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What the new Student Access and Earnings Classification means for your institution

A new Carnegie metric to demonstrate institutional value through student success

March 15, 2025, By Ed Venit, Ph.D., Managing Director

This year, the Carnegie Foundation, in collaboration with the American Council on Education (ACE), will launch the Student Access and Earnings Classification. This new system of student success metrics aims to assess how effectively colleges and universities drive social and economic mobility. This initiative could transform how institutional effectiveness is evaluated—not just in terms of research output but also by measuring economic impact and social mobility outcomes.

Here’s what you need to know and how you can position your institution for success.

Three Key Features of the Student Access and Earnings Classification

Metrics for Access and Economic Outcomes

The Student Access and Earnings Classification emphasizes two critical components: access and economic outcomes. The “access” metric evaluates how closely an institution’s student demographics align with the socioeconomic and racial diversity of its surrounding region or nationally. The “economic outcomes” metric examines the post-graduation earnings of students who received federal financial aid, accounting for regional job market differences and racial disparities in hiring. Together, these measures offer a comprehensive perspective of how institutions foster social mobility.

Peer Cohort Grouping for Fair Comparisons

To make fair comparisons, this system will group institutions into peer cohorts based on their characteristics and program portfolio. By analyzing similar schools within the same context, the Student Access and Earnings Classification highlights institutions that excel in promoting social mobility with the resources they have. This peer-group approach also sets aspirational benchmarks for other institutions, fostering a more meaningful framework for improvement.

Economic Impact

Success in these metrics could have significant financial implications for institutions. Schools that demonstrate strong performance in promoting social mobility may gain increased eligibility for government grants, foundation funding, and other financial resources. This potential redistribution of funding highlights the need for targeted investments in strategies that yield measurable improvements in student outcomes.

Strategic Actions for Student Success Leaders

The Student Access and Earnings Classification represents a fundamental shift in how institutional excellence is defined. By emphasizing “multiple lanes of institutional excellence” rather than traditional prestige-based hierarchies, this new approach celebrates achievements aligned with each institution’s unique mission and capacity. For higher education leaders, this presents an opportunity to adopt actionable strategies that enhance social and economic mobility while positioning their institutions as leaders in this evolving landscape. Below are four key actions to help your institution excel within the new classification system.

1. Capitalize on “Multiple Lanes of Excellence”

The new system will highlight outstanding work that might otherwise go unnoticed. Use this opportunity to set a target for your team that they can rally around. Early movers could rise to the top of their peer sets and stand out nationally by positioning themselves as leaders.

  • Discover strategies for creating a proactive student success strategy in this on-demand webinar.

2. Use Differentiated Retention Strategies to Improve Access Metrics

Access isn’t just about enrolling a diverse student body—it’s about ensuring they succeed. Disaggregate your retention data to uncover disparities between Pell- and non-Pell students, and between racial groups. Address these gaps to boost diverse enrollment and improve your standing on the access metric.

  • Watch these videos to see how Navigate360’s early alert data helps Samford identify and support first-generation and low-income students.

3. Focus on Improving Graduate Earnings

While this metric might seem intimidating, the goal isn’t to overhaul your entire program portfolio. Instead, aim to boost earnings for all graduates, regardless of major. Initiatives like bolstering career services, expanding internship opportunities, and improving employer partnerships can make a meaningful difference without disrupting your existing program structure.

4. Prioritize Completion Rates

Graduation remains the single biggest determinant of a graduate’s earnings. As Mushtaq Gunja from ACE notes, “What really drags down salaries are a lack of good completion rates.” Institutions should make improving completion a top priority through enhanced advising, targeted support services, and streamlined pathways to graduation.

Special Implications for Highly Selective Colleges and Universities

Selective institutions are no strangers to rankings, and the new Carnegie classification offers both a challenge and an opportunity. Many elite schools are already looking for ways to reshape public perceptions of exclusivity. Emphasizing socioeconomic mobility could be a powerful strategy.

For these institutions, the classification presents a chance to attract new funding and enhance their reputations as engines of upward mobility. To prepare, many are rethinking career services, increasing investments in programs that support diverse student populations, and exploring innovative strategies to improve post-graduation outcomes.

Learn how expanding enrollments at elite universities are reshaping student success strategies in our new insight paper.

 

The Bottom Line

For all types of colleges and universities, the Student Access and Earnings Classification presents an opportunity to redefine how institutional success is measured. By moving beyond traditional measures of institutional prestige, this system places a spotlight on the factors that truly matter— opportunity and outcomes. The time to act is now. Institutions that embrace this change will showcase their leadership in advancing higher education social and economic mobility, attract critical resources, and reaffirm their commitment to creating a more equitable and prosperous society.

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