College student Josh Eschke works at a local plant while earning a degree in microelectromechanical systems Photo courtesy of Lorain County Community College
Colleges across the United States have invested tens of millions of dollars in credential-stacking programs, which allow students to earn a series of credentials over time that lead to a degree or certificate. These programs often promise to help low-income students chart a path to the middle class. But do they deliver?
A recent RAND study showed that low-income students are more likely to stack credentials than middle- and high-income students. Those low-income students who built up credentials over time sharply reduced the earnings gap with their more-advantaged peers.
This data is promising, but there are caveats. The best outcomes were seen when students built up credentials—for example, earning a certificate and then stacking even more credentials for an associate’s degree. On the other hand, if they simply collected credentials to earn a series of shorter-term certificates, then there was no meaningful increase in earnings. Further, stackable credentials are most valuable in certain fields, such as nursing and manufacturing.
With more knowledge about what makes these programs effective, colleges can provide students with more up-front information about the value of different credentials—and invest in programs that can help more students succeed.
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