What One State Learned After a Decade of Free Community College

Thirty-seven percent of students who initially enrolled in college with the Promise scholarship program earned a two-year associate degree within three years, compared with only 11 percent of students who applied for the scholarship but never met its requirements, such as financial aid paperwork and service hours.* Tennessee projects that since its inception, the scholarship program will have produced a total of 50,000 college graduates by 2025, administrators told me in an interview.

Before the free tuition program went statewide, only 16 percent of Tennessee students who started community college in 2011 had earned an associate degree three years later. Graduation rates then rose to 22 percent for students who started community college in 2014. At this time, 27 Tennessee counties had launched their own free tuition programs, but the statewide policy had not yet gone into effect.

By 2020, when free tuition statewide had been in effect for five years, 28 percent of Tennessee’s community college students had earned a degree in three years. Not all of these students participated in the free tuition program, but many did.

It’s unclear if the free tuition program is the driving force behind the rising graduation rates. It could be that motivated students sign up for it and abide by the rules of the scholarship program and might have still graduated in higher numbers without it. It could also be that unrelated nationwide reforms, from increases in federal financial aid to academic advising, have helped more students make it to the finish line.

I talked with Celeste Carruthers, an economist at University of Tennessee Knoxville, who has been studying the free tuition program in her state. She is currently crunching the numbers to figure out whether the program is causing graduation rates to climb, but the signs she sees right now are giving her “cause for optimism.” Using U.S. Census data, she compared Tennessee’s college attainment rates with the rest of the United States. In the years immediately following the statewide scholarship program, beginning with the high school class of 2015, there is a striking jump in the share of young adults with associate degrees a few years later, while associate degree attainment elsewhere in the nation improved only mildly. Tennessee quickly went from being a laggard in young adult college attainment to a leader – at least until the pandemic hit. (See graph.)

Although there will likely be continuing evaluation of the Tennessee program, researchers and program officers point to three lessons learned so far:

• The scholarship program hasn’t helped many low-income students financially. The Federal Pell Grant of $7,395 far exceeds annual tuition and fees at Tennessee’s community colleges, which hover around $4,500 for a full-time student. Community college was already free for low-income students, who represent roughly half of the students in Tennessee’s free college program. Like other free college programs around the country, Tennessee’s is structured as a “last dollar” program, which means that it only pays out after other forms of financial aid are exhausted.

That means that tuition subsidies have primarily gone to students from higher income families that don’t qualify for the Pell Grant. In Tennessee, the funding source is the state lottery. Roughly $22 million of lottery proceeds were used to pay for community college tuition in the most recent year.

• Free tuition alone isn’t enough help. In 2018, Tennessee added coaching and mentoring for low-income students to give them extra support. (Low-income students hadn’t been receiving any tuition subsidies because other financial aid sources already covered their tuition.) Then, in 2022, Tennessee added emergency grants for books and other living expenses for needy students – up to $1,000 per student  per semester.* The extra assistance for low-income students is financed through state budget allocations and private fundraising. For students who are the first generation in their families to attend college, current graduation rates have jumped to 34 percent with this extra support compared with 11 percent without it, the 10-year report said.

“Pairing the financial support with the non-financial support – that mentoring support, the coaching support – is really the sweet spot,” said Graham Thomas, chief community and government relations officer at tnAchieves. “It’s the game changer, and that is often overlooked for the money part.”

Coaching is best conducted in person on campus. During COVID, Tennessee launched an online mentoring platform, but students didn’t engage with it. “We learned our lesson that in-person is the most valuable way to go when building relationships,” said Ben Sterling, chief content officer at tnAchieves.

• The worst case scenario didn’t happen. When free community college was first announced, critics fretted that the zero price tag would lure students away from four-year colleges, which aren’t free. That’s bad because the transfer process from community college back to a four-year school can be rocky with students losing credits and the time invested. Studies have shown that most students are more likely to complete a four-year degree if they start at a four-year institution. But the number of bachelor’s degrees did not fall. It seems possible that the free tuition policy lured students who wouldn’t have gone to college at all in the past, without cannibalizing four-year colleges. However, bachelor’s degree acquisition in Tennessee, though rising, remains far below the rest of the nation. (See graph.)

As an aside, students are also able to use their Tennessee Promise scholarship funds at a limited number of public four-year colleges that offer associate degrees. About 10 percent of the program’s students take advantage of this option.

Despite all the positive signs for educational attainment in Tennessee, recent years have not been kind. “Everything that’s happened to enrollment since COVID  kind of erased all of the gains from Tennessee Promise,” said the University of Tennessee’s Carruthers. The combination of pandemic disruptions, a strong job market and changing public sentiment about higher education hammered enrollment at community colleges nationwide. Students have started returning again in Tennessee, but community college enrollment is still below what it was in 2019.

* Correction and clarifications: Because of incorrect information supplied to The Hechinger Report, an earlier version of this story mischaracterized the two groups of students that succeeded in earning a college degree within three years. This story was also modified to clarify that only coaching was introduced in 2018. A separate mentoring service already existed. In addition, the $1,000 emergency grants, which began in 2022, are not one-time grants but can be issued multiple times.