DETROIT, MICHIGAN - NOVEMBER 5: Volunteers with For Michigan and NextGen America encourage students to vote outside the polling station on the campus of Wayne State University on November 5, 2024 in Detroit, Michigan. Getty Images/Sarah Rice

Recently, enrollment crisis has hit rural colleges in the US. Now, it seems, it's a nationwide concern for all higher education institutions.

New figures indicate that fewer young adults are going to college, particularly 18-year-old freshmen. Freshman enrollment among 18-year-old students declined by 5% during the current fall semester with a greater than 6% drop in public and private, non-profit four-year colleges.

This problem is concerning for universities in that while application numbers continue to climb, actual enrollment has decreased with many institutions facing questions over how to attract and retain the students.

Rising College Tuition Fees

The Guardian reported that one of the major reason that explains the fall is an ever-increasing price of attending an institution. Public four-year colleges now average in-state tuition at $11,610 and out-of-state at a whopping $30,780 that is almost $1,000 more than last year. Many students face economic obstacles arising from delays and glitches about the system for financial aid application; students would not know the aid amount awaiting them.

Yet, labor market changes are also playing an increasingly significant role. Many opt out of further education and go into jobs if job opportunities are available in plenty. This is a reality especially for those with financial burdens to cater to at home. The more immediate benefit of having some money right away outweighs much of the long-term pay-off of a college education for many young people.

It is even worse for students of color. In the same The Guardian report, the Black freshman enrollment at highly selective universities has declined by almost 17%. This shows the persisting problem of diversity and equity in higher education as these schools struggle to open up their campuses to all sorts of students.

Despite declining enrollments, students are still hungry for higher education. Applications are rising, but particularly so for low- and middle-income students. Affordability and access, though, are key challenges to overcome.