As more and more Americans attain nondegree credentials—including certificates and microcredentials—researchers are asking a pressing question: Who’s paying for it?
The Big Idea: A Pew analysis of 2022 data from the National Training, Education, and Workforce Survey shows that about half of those who earned nondegree credentials paid for the programs fully out of pocket. The rest cited loans, employer reimbursement, scholarships, and family support. In contrast, anywhere from 72% to 87% of undergraduate students in degree programs receive some form of financial aid.
The National Skills Coalition calls this the “nondegree credential financial aid gap.” While students pursuing degrees qualify for federal Pell Grants, until recently noncredit workforce education and training programs were excluded. Congress recently passed an expansion, Workforce Pell, that will allow students to use the grants for some short-term, noncredit programs. But the change won’t go into effect until July 2026.
Pew senior manager for student loans Ama Takyi-Laryea, who was involved in the data analysis, says she and her colleagues began researching this question two years ago as interest in nondegree credentials was exploding. About one-third of all Americans between the ages of 16 and 75 have attained a nondegree credential, according to the survey results. And between 2009 and 2021, the rate at which people were attaining these credentials tripled.
“We found that very little is known about how students pay for these programs,” Takyi-Laryea says. “That is a bit concerning because some of these programs are costly.”
The analysis focused on vocational certificates and professional licenses earned at community colleges, technical or trade schools, or another kind of provider, including employers in some cases. While the cost of programs can vary widely depending on the duration and type of program, the analysis cited research showing that the median monthly cost of attendance for a nondegree program is between roughly $2,100 and $2,500.
The data reflects a rapidly shifting landscape for hiring as well as the rise in tuition costs for traditional degree programs, but it is not clear on how the nondegree credentials fit into pathways for better jobs. About half of those who have a nondegree credential also have a degree. The survey didn’t ask the order in which the credentials and degrees were attained, or whether the credential was stackable.
State and Federal Investments: States are increasingly investing in nondegree credentials. Takyi-Laryea says collecting data on economic mobility outcomes will be crucial in future investments. Research shows wide variability on learners’ labor market outcomes, even more than for degree programs. But on average, an industry-recognized credential increases a person’s quarterly earnings by approximately $1,000 and the probability of being employed by 2.4 percentage points, according to one study.
“About 32 states invested $5.6B in these programs in 2024 alone—a $1.8B increase from the previous year,” Takyi-Laryea says. “We are looking at ways in which states can strengthen their data systems, so that they can identify quality programs for students and protect students from attending programs with little or low value.”
The new Workforce Pell program will provide funding for some short, career-focused programs, though with many restrictions around outcomes, including the income students will need to make. Takyi-Laryea says as of now, the impact of Workforce Pell on financial aid for nondegree credentials is a “wait-and-see situation.”
Looking Forward: In the meantime, Pew researchers plan to parse the data further and answer questions about demographics and the ways students are paying for these programs.
“In this analysis, we weren’t able to detangle what using their own money means,” Takyi-Laryea says. “Does that mean you’re using credit cards or other risky forms of financing? We want to delve a little bit more into that.”