Risk Insights: Unpacking the Lumina Foundation-Gallup Higher Education Study
It's Mental Health Awareness Month. In Risk Management, we often hear that mental health is one of the top risks facing institutions today. In our next issue of HigherEdRisk, which will be out at the end of May, we will share two articles on this topic. One article will showcase resources to assist with student mental health; the other will focus on leadership mental health, a topic that does not get the attention it deserves. Thanks to Dr. Nance Roy and The Jed Foundation and Dr. James Geisler for sharing their valuable insights in our Summer Edition.
In the spirit of this topic and further discussion, I am sharing the most recent Lumina Foundation-Gallup 2025 Higher Education Study, which provides helpful statistical insights into what drives student withdrawal rates.
Unpacking the Report:
According to the report, "About a third of currently enrolled students pursuing a bachelor's degree, associate degree, certificate or certification (32%) say they have considered stopping their coursework in the past six months." That is a significant number. While the report points to improvement from 2022, where it hit a peak of 41%, emotional and mental health continue to drive withdrawals.
Mental Health Continues to Dominate
Mental health challenges remain the primary withdrawal drivers, with 49% of current students citing emotional stress and 41% reporting personal mental health reasons for leaving their program.
Cost continues to be a top driver.
The cost of a college education is another key driver, but that has decreased from 31% in 2023 to 24% in 2024.
Demographic disparities and attrition rates
Hispanic and Black students continue to report higher withdrawal consideration rates (42% and 35%, respectively) than their White and Asian counterparts (28% and 27%), mirroring trends seen in previous years.
Students with caregiving responsibilities are another group that is experiencing elevated withdrawal risk. This group is typically responsible for caring for children and adult family members (59%) or adult family members only (45%).
What can be done?
Emotional stress and mental health concerns remain the top drivers, outpacing financial strain. This statistic continues to demonstrate that program success and completion are intertwined with students' well-being.
These findings highlight the need for best-in-class mental health support services. The Jed Foundation is one resource that can help institutions thrive. The Mental Health Literacy Collaborative, whose work was featured in our Fall 2024 edition, is another helpful resource to guide colleges and universities in navigating student mental health by focusing on the human brain.
Tuition insurance can also be a helpful tool, helping reduce financial stress on students if they are forced to withdraw due to legitimate reasons including physical and mental health conditions. Tuition insurance simply provides a refund when schools do not. Students who withdraw after institutional refund deadlines (typically early in the semester) often lose substantial payments for tuition, housing and fees.
From an institutional perspective, tuition insurance can help stabilize revenue, increase student retention and reduce the cost of administering student withdrawals and appeals.
Bottom line:
From a risk management standpoint, comprehensive mental health services, flexible learning options, and targeted resources for underserved and caregiving students can be leveraged as risk mitigation strategies that positively impact student persistence metrics.
Investments in programs like the Jed Foundation and the Mental Health Literacy Collaborative can be change-makers in addressing mental health and reducing student withdrawals.
Tuition insurance can also decrease the stress on students who need to withdraw from school, and increase the confidence students and families have in their ability to protect their college investment from unexpected health conditions including specifically- mental health.
Proactive investment in risk mitigation tools and mental health support systems should be prioritized to improve student success outcomes and bolster an institution's long-term financial viability in an increasingly competitive space.
Additional reading:
