The Impact of Institutional Selectivity on Student Retention

Approximately 60 percent of students who started pursuing a bachelor’s degree at a four-year institution in the fall of 2011 graduated from the same institution within six years. The 6-year graduation rate was higher for female students than for male students, at 63 percent and 57 percent, respectively.

Retention rates refer to the percentage of first-time undergraduate students who return to the same institution for the next fall term. Graduation rates indicate the percentage of first-time undergraduate students who finish their program at the same institution within a certain time frame. This analysis looks at how retention and graduation rates vary for first-time, full-time degree- or certificate-seeking undergraduate students across different types of postsecondary institutions. It also examines changes in graduation rates over time and highlights differences between male and female students.

Retention Rates for First-Time Undergraduate Students at 4-Year Institutions

The overall retention rate for first-time, full-time degree-seeking undergraduate students who began their studies at 4-year degree-granting institutions in fall 2016 was 81 percent. The highest retention rates were observed at the most selective institutions, defined as those with acceptance rates below 25 percent across both public and private nonprofit sectors.

At public 4-year institutions, the overall retention rate was 81 percent. Among the least selective public institutions with open admissions policies, the retention rate was 62 percent, while the most selective public institutions reported a retention rate of 96 percent.

Similarly, private nonprofit 4-year institutions had an overall retention rate of 81 percent. At these institutions, retention rates ranged from 66 percent at those with open admissions to 96 percent at those accepting fewer than 25 percent of applicants.

Private for-profit 4-year institutions had an overall retention rate of 54 percent, which is lower than that of public and private nonprofit institutions.

Overall Retention Rates:

• 81% of first-time, full-time degree-seeking undergraduate students were retained at 4-year degree-granting institutions across all acceptance rates.

Retention by Institution Type:

• Public Institutions: 81% retention rate.

• Private Nonprofit Institutions: 96% retention rate.

• Private For-Profit Institutions: 54% retention rate.

Retention by Admission Selectivity:

• Institutions with Open Admissions:

  • Overall: 59% retention rate.

  • Public Institutions: 62% retention rate.

  • Private Nonprofit Institutions: 66% retention rate.

  • Private For-Profit Institutions: 48% retention rate.

• Institutions Accepting Less Than 25% of Applicants:

  • Overall: 96% retention rate.

  • Public Institutions: 96% retention rate.

  • Private Nonprofit Institutions: 96% retention rate.

  • Private For-Profit Institutions: 100% retention rate.

Key Insights:

• Retention rates are generally higher at private nonprofit institutions compared to public and private for-profit institutions.

• Institutions with more selective admissions (accepting less than 25% of applicants) exhibit significantly higher retention rates across all types of institutions.

• Open-admission institutions have notably lower retention rates in comparison to their selective counterparts.

Retention and Graduation Rates at 2-Year Institutions

In 2016, the overall retention rate for first-time, full-time degree-seeking undergraduate students at 2-year degree-granting institutions was 62 percent. Retention rates varied by institution type, with public 2-year institutions reporting a retention rate of 62 percent, compared to 67 percent for both private nonprofit and private for-profit 2-year institutions.

The 1990 Student Right-to-Know Act requires postsecondary institutions to disclose the percentage of students who complete their programs within 150 percent of the normal completion time (e.g., within six years for bachelor’s degree programs). The graduation rates presented in this data are based on that standard. It is important to note that students who transfer to another institution without completing a degree at their initial school are counted as non-completers in these calculations. To provide additional context, this data also includes transfer rates for students at 2-year institutions.

Overall Retention Rate:

• 62% of first-time, full-time degree-seeking undergraduate students were retained at 2-year degree-granting institutions from 2016 to 2017.

Retention by Institution Type:

• Public Institutions: 62% retention rate.

• Private Nonprofit Institutions: 67% retention rate.

• Private For-Profit Institutions: 67% retention rate.

Key Insights:

• Private nonprofit and private for-profit institutions had slightly higher retention rates (67%) compared to public institutions (62%).

• The overall retention rate for 2-year degree-granting institutions was consistent with the public institution rate (62%).

Six-Year Graduation Rates for First-Time Undergraduate Students

For first-time, full-time undergraduate students who began pursuing a bachelor’s degree at 4-year degree-granting institutions in fall 2011, the overall 6-year graduation rate was 60 percent. By 2017, 60 percent of these students had earned a bachelor’s degree at the same institution where they started. Graduation rates varied by institution type, with public institutions reporting a 60 percent rate, private nonprofit institutions at 66 percent, and private for-profit institutions at 21 percent.

The 6-year graduation rate was higher for females than males overall (63 percent vs. 57 percent). This trend was consistent across public institutions (62 percent for females vs. 57 percent for males) and private nonprofit institutions (69 percent for females vs. 63 percent for males). However, at private for-profit institutions, males had a slightly higher graduation rate than females (22 percent vs. 20 percent).

Graduation rates also differed based on institutional selectivity. Students at the most selective institutions, with acceptance rates below 25 percent, had the highest 6-year graduation rate at 87 percent. In contrast, students at institutions with open admissions policies had the lowest rate, at 31 percent.

Between 2010 and 2017, the overall 6-year graduation rate for first-time, full-time undergraduate students increased by 2 percentage points, rising from 58 percent (for students who began in 2004) to 60 percent (for students who began in 2011). During this time, the graduation rate at public institutions grew by 4 percentage points, from 56 to 60 percent, and increased by 1 percentage point at private nonprofit institutions, from 65 to 66 percent. However, at private for-profit institutions, the rate dropped by 8 percentage points, from 29 percent to 21 percent.

The graduation rate for males rose slightly from 56 to 57 percent, while the rate for females increased from 61 to 63 percent over the same period.

Overall Graduation Rates (Within 6 Years):

• All Institutions: 60% graduation rate.

  • Males: 57%.

  • Females: 63%.

Graduation Rates by Institution Type:

• Public Institutions:

  • Overall: 60%.

  • Males: 57%.

  • Females: 62%.

• Private Nonprofit Institutions:

  • Overall: 66%.

  • Males: 63%.

  • Females: 69%.

• Private For-Profit Institutions:

  • Overall: 21%.

  • Males: 22%.

  • Females: 20%.

Key Observations:

• Graduation rates are highest in private nonprofit institutions (66%), with females outperforming males (69% vs. 63%).

• Public institutions have a moderate overall graduation rate (60%), with a notable gap between males (57%) and females (62%).

• Private for-profit institutions have significantly lower graduation rates (21%), with a marginal difference between males (22%) and females (20%).

Graduation and Enrollment Outcomes at 2-Year Institutions

At 2-year degree-granting institutions, 32 percent of first-time, full-time undergraduate students who started seeking a certificate or associate’s degree in fall 2014 completed their program within 150 percent of the normal time required (e.g., completing a 2-year degree within 3 years). Additionally, 15 percent of students had transferred to another institution, 12 percent were still enrolled at their original institution, and 41 percent were no longer enrolled and had not transferred to another institution.

For students who started in the fall of 2014, the graduation rate within 150 percent of the normal time was 25 percent at public 2-year institutions, 62 percent at private nonprofit 2-year institutions, and 61 percent at private for-profit 2-year institutions. Among these students, 18 percent at public 2-year institutions transferred to a different school, compared to 3 percent at private nonprofit institutions and 1 percent at private for-profit institutions. The percentage of students who remained enrolled at their original institution was 14 percent at public 2-year institutions, 22 percent at private nonprofit institutions, and 2 percent at private for-profit institutions. The percentage of students who had neither graduated nor transferred and were no longer enrolled was 44 percent for public 2-year institutions, 13 percent for private nonprofit institutions, and 36 percent for private for-profit institutions.

Across all 2-year institutions, the graduation rate within 150 percent of the normal time was higher for females than for males. For example, at private for-profit 2-year institutions, 63 percent of females completed their program within this time frame, compared to 58 percent of males.

Overall Graduation Rates (Within 150% of Normal Time):

• All Institutions: 32% graduation rate.

  • Males: 29%.

  • Females: 34%.

Graduation Rates by Institution Type:

• Public Institutions:

  • Overall: 25%.

  • Males: 24%.

  • Females: 26%.

• Private Nonprofit Institutions:

  • Overall: 62%.

  • Males: 59%.

  • Females: 64%.

• Private For-Profit Institutions:

  • Overall: 61%.

  • Males: 58%.

  • Females: 63%.

Key Observations:

• Graduation rates are highest at private nonprofit institutions (62%), with females outperforming males (64% vs. 59%).

• Private for-profit institutions also show relatively high graduation rates (61%), with females achieving a higher rate (63%) compared to males (58%).

• Public institutions have the lowest graduation rates (25%), with minimal difference between males (24%) and females (26%).

• Across all institution types, females consistently have higher graduation rates than males.

The Road Ahead for Improving Retention and Graduation

Retention and graduation rates provide valuable insights into the success and challenges faced by undergraduate students across various institution types. While private nonprofit institutions demonstrate higher overall rates, public institutions show steady improvement in graduation outcomes. Conversely, private for-profit institutions continue to struggle with lower retention and graduation figures.

The consistent outperformance of female students compared to male students across most institution types highlights the need for targeted support for male students. Additionally, the significant gaps between selective and open-admission institutions underscore the importance of institutional policies and support systems in driving student success.

As higher education evolves, institutions must focus on addressing these disparities by improving academic resources, enhancing student support programs, and fostering equitable opportunities for all students to succeed. By doing so, they can ensure that more students complete their educational journeys and achieve their academic goals.