Can 2-Year Institutions Deliver 4-Year Results? Where Community Colleges Deliver Economic Mobility

A four-year degree was once the primary way to climb the ladder of success. For decades, the path seemed straightforward: high school, university, then a career. But as tuition costs skyrocket and the job market shifts, more people are questioning this well-worn route.

Enter community colleges. Once seen as stepping stones, these two-year institutions are helping graduates blaze a new trail forward. Polls show rising public confidence in the value of these programs, but do they really deliver the same level of success for a fraction of the cost?

In this report, we use research compiled by the Postsecondary Value Commission to identify how and where community colleges are helping students climb the economic ladder faster and for less.

Top States for Community College Alumni Earnings One Year Post-Graduation

For graduates of community colleges, earning potential offers a glimpse into the value of their degree. When looking at median alumni earnings one year post-graduation, North Dakota community college graduates lead the nation with a median salary of $47,229. While this number isn't massive, it's substantially above the state's living wage and is likely to grow as graduates gain workforce experience. 

Community College Median Salaries by State 1 Year After Graduation

The top three states for median alumni earnings one year post-graduation — North Dakota, Arizona, and New Hampshire — also stand out for specific reasons related to their economies and educational priorities.

North Dakota Community Colleges

The North Dakota University System's 2021-2026 Strategic Plan focuses on building student awareness of workforce opportunities and flexible career pathways. One key objective is to identify the top 10 high-priority occupations annually, such as nursing and teaching, and share this information with admissions and career services staff at each institution. By aligning education with these in-demand fields, students at community colleges in North Dakota are better positioned to secure immediate employment with competitive earnings. 

Arizona Community Colleges

Arizona's community colleges stand out for their nationally recognized and forward-thinking workforce development programs. A prime example is the Arizona Advanced Technology Network, a collaboration between Maricopa County Community College District, Central Arizona College, and Pima Community College. This partnership has created a standardized, industry-endorsed curriculum aimed at equipping students with the skills required for advanced manufacturing jobs. Pima Community College is also nearing the completion of its Aviation Technology Center expansion, which will train hundreds of students for high-demand roles in Southern Arizona’s aerospace industry.

New Hampshire Community Colleges

New Hampshire's community colleges demonstrate educational priorities that follow a similar trend to both North Dakota and Arizona — with a key focus placed on the state's workforce needs. Through partnerships with local employers, the Community College System of New Hampshire (CCSNH) creates training programs that provide students with industry-recognized certifications. These efforts, coupled with New Hampshire's strong job market, help community college graduates in the state secure healthy salaries soon after completing their programs.

Top Community Colleges for Median Alumni Earnings One Year Post-Graduation

Although it's helpful to look at the top ten states where community college graduate earnings are highest, the top programs can also inform us of what's driving this success. The three community colleges in the nation producing the highest earners one year after graduation are all located in California. Graduates of Allan Hancock College, Canada College, and Crafton Hills College earn over $80,000 annually in their first year.

Community College Median Salaries by School 1 Year After Graduation

The high earnings of these graduates are not coincidental. Just like the leading states above, these colleges prioritize programs that align with in-demand industries, like healthcare, technology, and public safety, which offer strong starting salaries. Allan Hancock College, for example, has established partnerships with local businesses and developed work experience programs to ensure their students graduate with the skills and practical experience needed to succeed in the workforce​.

It's also worth noting that all of these community colleges are located in some of the highest cost-of-living areas in the state and country, which likely contributes to the earning potential of their graduates.

Top States for Community College Alumni Earnings Five Years Post-Graduation

The long-term earning potential for community college graduates continues to increase well beyond their first year out of school. In the top seven states for community college alumni earnings five years after graduation, the median earnings of graduates surpass $50,000.

Community College Median Salaries by State 5 Years After Graduation

When we look further into these states, we see that Utah and Montana — which produced the first and third highest median earners five years post-graduation — didn’t even rank in the top ten for one-year post-graduation earnings. This suggests that community college graduates in these states saw their median earnings increase by at least $11,000 between the first and five-year mark.

Similarly, in Washington, while the state ranked seventh in median earnings just one year after graduation, its graduates saw an earnings jump of over $10,000 by the five-year mark. This data demonstrates the long-term value of community college education in certain states, where earnings grow over time as graduates establish themselves in their careers.

Top Community Colleges for Economic Mobility 10 Years After Initial Enrollment

While community colleges can offer a path to immediate workforce entry, their long-term impact on economic mobility can be even more telling. By analyzing alumni earnings 10 years after initial enrollment, we see how certain programs can lead to impressive financial outcomes, rivaling those of four-year institutions. Three colleges in particular stand out as leaders in long-term economic mobility.

Community College Median Salaries by School 10 Years After Graduation

Los Angeles County College of Nursing and Allied Health

The Los Angeles County College of Nursing and Allied Health tops the list, with its graduates earning a median salary of $115,996 a decade after enrollment. This figure points to the earning potential of healthcare-focused programs, particularly in nursing, which has consistently shown high demand and lucrative salaries. The college’s graduates often enter the workforce as registered nurses — a field known for both stability and growth.

Vermont Technical College

Following close behind is Vermont Technical College — now Vermont State University after a recent merger — with graduates earning a median of $69,944 after 10 years. The school’s emphasis on engineering and technology-driven programs has proven to be a sound investment for students. By focusing on applied learning, the college prepares students for specialized, high-paying fields, such as electrical and mechanical engineering. Graduates often enter industries like manufacturing and IT, which offer steady salary increases with experience.

Carolinas College of Health Sciences

Rounding out the top three is Carolinas College of Health Sciences, where alumni earn a median of $68,011 a decade after enrolling. Much like its Los Angeles counterpart, Carolinas College offers robust programs in nursing and allied health fields and creates a pipeline to some of the most in-demand and well-compensated healthcare careers in the country. The school's success lies in its strong clinical partnerships. While a public institution, the school is owned by Atrium Health — a hospital network in the Charlotte-Mecklenburg area with over 70,000 employees. 

College Completion Rates Across Racial Demographics

Completion rates also help us evaluate the effectiveness of community colleges, because they directly influence a student’s potential for upward mobility and long-term economic success. When analyzing college completion rates across racial groups, apparent differences emerge between two-year and four-year institutions. 

Asian students have a 60% completion rate at four-year colleges compared to 50% at community colleges, while Hispanic students show a 49% rate of completion at four-year universities — only slightly higher than the 43% rate at community colleges.

While four-year institutions show marginally higher completion rates, the gap is smaller than you might expect. This suggests that community colleges are effectively serving diverse populations and providing viable pathways to success.

* Abbreviations for the chart below:
  AIAN = American Indian and Alaska Native
  NHPI = Native Hawaiian and Pacific Islander
  NRA = Non-Resident Alien

College Completion and Transfer Rates by Income Level

Income plays a significant role in the likelihood of students completing their degrees. Interestingly, data shows low-income students are more likely than their middle- and high-income counterparts to transfer and complete degrees at two-year institutions. 

For example, we see that 8.55% of low-income students who transferred to a two-year college completed their degree within two years, compared to just 5.7% of their high-income peers. Middle-income students show similar patterns, with an 8.39% completion rate within two years at community colleges.

These findings highlight the vital role community colleges play as accessible entry points for students who lack the financial resources for four-year universities. Many low-income students appreciate the affordability and flexibility that community colleges offer, which allows them to balance education and work.

In several states, new initiatives also allow residents to attend community college for free or at reduced rates. However, most schools have a "Satisfactory Academic Progress" policy that factors in GPA, course completion, and time to degree completion in order to remain eligible for aid. These policies serve as additional motivators for students to perform their best.

Gender Differences in College Completion Rates

When analyzing college completion rates across gender lines, female students outperform their male counterparts at both two-year and four-year institutions. At community colleges, 20.06% of female students complete their programs, compared to 18.95% of male students. 

When considering why female students have higher college completion rates, several factors stand out. Women tend to display higher levels of conscientiousness than men, as well as better teamwork and communication skills — all qualities that contribute to academic success. Additionally, women often pursue higher education as a means to achieve financial independence and career stability, especially for the over 1 million mothers attending community colleges. 

In response to the wage gap, community colleges have created initiatives aimed at guiding more women into high-paying fields like STEM and skilled trades, which can offer better financial outcomes post-graduation.

Factors Influencing Completion Rates

Several factors influence why community college completion rates lag behind those of four-year institutions. One of the biggest challenges is that the majority of community college students attend part-time. Many of these students are working adults balancing jobs, family responsibilities, and school. The lack of a full-time focus can lead to delays in completion.

Four-year institutions also often have more robust student support services, including tutoring centers, academic advisors, and career counseling, which can provide the scaffolding students need to complete their degrees. However, community colleges are making efforts to close this gap by expanding support services and tailoring programs to meet the unique needs of their student populations.

The Future of Economic Mobility Through Two-Year Institutions

Community colleges may not always match four-year universities in completion rates or earnings, but when you factor in the lower cost of attendance, they come close. The data reveals that two-year programs offer an accessible, affordable, and practical path for students pursuing careers in fields like healthcare, technology, and skilled trades. For low-income students or those balancing work and family commitments, the flexibility of part-time programs makes community college invaluable. 

As employers increasingly prioritize hands-on experience and certifications over traditional degrees, community colleges are poised to play an even larger role in driving economic mobility. With continued investment and partnerships with local employers, they can become a key pathway to financial stability. In the future, more students may choose community colleges as the most accessible and direct route to a successful career, rather than viewing them as just a stepping stone. 

Methodology

This report uses data collected by the Integrated Postsecondary Education Data System (IPEDS) and College Scorecard. Institutions not participating in federal student financial aid programs may not be represented in IPEDS data, as they are not required to reply to the IPEDS surveys. Many College Scorecard data elements are drawn directly from, or derived from, data reported to the IPEDS. Note that some colleges report combined data that pertain to more than one IPEDS institution. IPEDS data used in this report is from the June, 2024 release.

Data pertaining to 10-year earnings and economic mobility were obtained from the Equitable Value Explorer. The Equitable Value Explorer includes data obtained from the College Scorecard, the Integrated Postsecondary Education Data System (IPEDS), the Census Bureau’s American Community Survey, and is supplemented by more granular analyses provided by the University of Texas System.