Dropout Rates in Universities Worldwide: Trends and Reasons

A new report from the Institute of Public Affairs (IPA) highlights a worrying trend: dropout rates among domestic students in Australian universities are climbing to record levels. But this challenge isn't isolated to Australia.

Recent data from organizations like the NSC Research Center and the US National Center for Education Statistics (NCES) reveal that similar dropout trends are emerging globally, shaped by economic pressures, remote learning, and shifting campus experiences.

Global dropout trends and student challenges

In Australia, nearly 25% of domestic students who began their degrees in 2017 had dropped out by 2022, as shown in the IPA's Fees for No Degrees report. Economic stress and feelings of disengagement, especially after the shift to online learning during the pandemic, are major factors driving students to leave without completing their degrees.

Similarly, the NCES 2024 report indicates that 23.3% of full-time undergraduates in the US leave without a degree, often due to financial instability, mental health challenges, and the pressures of balancing work and study. For part-time students, the retention rate is 44.5% – so over 55% drop out, and the rate has yet to recover to the pre-pandemic numbers.

The Some College, No Degree (SCNC) population is also on the rise. According to the NSC Research Center report, as of July 2022, the Some College, No Credential (SCNC) population under 65 has reached 36.8 million, up 2.9% from the previous year.

Remote learning and community

One of the most significant post-pandemic changes is the rise of remote and hybrid learning. Originally a necessity, online education has remained a fixture, offering flexibility but sometimes resulting in lower engagement and retention. A US CDC survey revealed that only 55% of students felt close to people at their school in 2023, compared to 62% in 2021.

A Student Voice survey from Inside Higher Ed and College Pulse confirms the importance of campus involvement to the student's education journey – 78% of students who did not participate in any extracurriculars and campus events are not satisfied with their college experience.

For international students, who are often a key focus for many universities, online options have been a positive development. However, for domestic students, it can diminish their sense of belonging, leading to higher dropout rates.

What's next?

The rising dropout rates pose a critical question for universities: how can they balance the flexibility of online education with the need for a vibrant campus culture? Solutions include hybrid learning models that encourage in-person engagement and targeted support services for students at risk of leaving early.

As universities globally look to address these challenges, they are increasingly focused on creating educational models that balance the needs of a diverse student population with the goal of sustaining high completion rates. For students, understanding these trends may help in making informed choices about their academic and financial futures.