The 'access gap' in trade school programs: How flexibility drives enrollment
The ‘access gap’ in trade school programs: How flexibility drives enrollment
The challenging economic climate has pushed more people toward trade schools in recent years, as reflected in the strong revenue growth at these institutions.
Despite the perception that trade school programs are more accessible and affordable than academic degrees, many would-be students are still held back by the cost of attending reputable programs.
As a result, vocational training providers are adopting flexibility as a core tenet of student tuition payment. Here, Lumion provides an overview of the impact on enrollment and what this means for the future of the trade school market.
The trend toward trade schools
The cost of college attendance has risen dramatically since the turn of the millennium, according to stats shared by Education Data Initiative. Tuition alone increased by 111.4% above the rate of wage inflation between 2000 and 2020, while the 25.6% rise in typical costs seen between 2013 and 2023 paints a similarly stark picture.
Combined with rapid upticks in living costs, it’s easy to understand why would-be students are less content with paying an average of $38,720 each year to attend a U.S. college. In this context, the attraction of trade schools is obvious.
From a pure price perspective, trade school programs cost as little as $5,000, according to Edvisors. Moreover, they take much less time to complete than a full four-year degree, meaning students can enter the job market and start earning sooner rather than later.
Avoiding student debt, which stood at $1.6 trillion as of June 2024, is another compelling reason for the growth of trade schools. It’s both a short-term and long-term advantage that makes sense for people from all backgrounds.
The flexibility factor
Lowering the barrier to trade school attendance remains a priority to increase enrollment and spur market growth, chiefly because even the prospect of paying a few thousand dollars for tuition and program materials is exclusory in certain demographics.
So schools that want to see a spike in student sign-ups are starting to adopt payment options that spread the cost over significantly longer periods, rather than requiring payment up front. This has notable repercussions according to the experts at trade school management platform Lumion, who cite a 25.1% boost in enrollment when flexible, longer-term payment options are made available to prospective students.
Industry data also shows that 90% of people aren’t aware of the earning potential of skilled trades, which might steer them away from trade schools, even though they could end up earning a salary that matches or exceeds roles made available to those with a bachelor’s degree.
Flexibility in this context comes in several forms. It covers not just repayment periods but also the repayment terms and the ways trade school attendees can pay. Keeping financing and loans in-house or with trusted partners helps schools both bolster enrollment and manage cash flow more consistently.
When unified with other strategies for attracting and converting leads, trade schools stand an even better chance of drawing prospects away from college courses that are beset by spiraling costs and diminishing employment prospects post-graduation.
The future implications and image issues
The next five years are expected to see continued growth for trade schools, according to data cited by the Education Writers Association (EWA). This includes a 6.6% annual increase in enrollment and a 6% bump in revenues every 12 months. Given that enrollment rates across the entire education sector are projected to be just 0.8% a year over the same period, it’s clear that trade schools are outperforming the broader sector.
While flexible payment is a driver of enrollment increases, there are still hurdles to overcome if this market is to remain buoyant for the foreseeable future. First, there’s the issue of job satisfaction in the blue-collar jobs that participants in trade school programs will enter once they have finished their studies. A Pew Research Center survey found that 43% of workers in this category would describe themselves as very or extremely satisfied with their profession, compared to 53% of white-collar workers.
The enduring stigma attached to skilled trades may be softening, but trade schools must continue to change the conversation and showcase exactly why it’s worth completing their programs for young people considering their careers today.
What's next for trade school enrollment?
Trade schools are in a uniquely advantageous position at the moment due to a combination of external economic conditions and internal advantages like flexible payment solutions. They must make the most of this scenario in order to fulfill and ultimately exceed the projected growth figures from analysts.
The upshot for prospective attendees is that trade schools are closing the access gap, and it’s easier to justify enrolling in trade school programs that leave graduates with a highly employable, in-demand skill.
This story was produced by Lumion and reviewed and distributed by Stacker.
