The growth of online college enrollment in the US
Spurred by the pandemic and a greater demand for flexibility, online higher education programs have begun to evolve from niche to mainstream in 2025. These fully online enrollment programs, now representing a sizable share of the U.S. education market, are reshaping who enrolls, the studies that are focused on, and how traditional college campuses operate.
Through aggregated data across sources including Statista, the National Center for Education Statistics, and other market research organizations, Scholarship Institute explored the ins and outs of online enrollment, and how this once regarded backup option is now paving the way for future generations of learners.
The online higher education market: Scale and growth
Per a 2024 Statista study of online education trends globally, an estimated 1.1 billion users are forecasted to be within the market in the next five years. Even before the COVID-19 pandemic occurred, online enrollment in college courses was growing while that for traditional campuses remained either stagnant or in a state of decline, dependent upon location.
The vast flexibility and reach of online programs have allowed institutions to scale beyond standard geographic boundaries. This has grown the demographic of attendees to encompass everyone from working adults to average college student-aged individuals spanning both urban and rural regions. Once the global pandemic arose, this impact became far more widespread, resulting in increased popularity and enrollment.
Enrollment trends: Numbers and patterns
"Exclusively online" students accounted for 25.6% of total enrollments at Title IV institutions during the fall of 2023 in a study conducted by the National Center for Education Statistics, up nearly 10% from the same study published just four years prior, near the start of the pandemic.
Even once the immediate spike from COVID-19 cooled off, enrollment trends have continued to increase compared to historical averages as remote learning tools such as Zoom have become mainstream. Public institutions and community colleges have accounted for a vast share of this enrollment, but national nonprofit online leaders are also starting to enroll tens of thousands of students across state lines.
Demographic breakdown: Who is enrolling online?
The percentage of students across the country choosing to enroll in either online only offerings or online courses has clearly been on the rise. However, the demographic of who is actually enrolling has also been in flux.
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The prevalence of online education options has resulted in increased enrollment across the United States, with the outer Midwest and upper Northeast seeing the largest swings. From a demographic standpoint, though, the traditional trend of an 18-22-year-old undergraduate living on campus is also changing. There are four new primary demographic patterns emerging with online higher education, as outlined by a 2023 study conducted by EducationDynamics.
- Age: A little under half of online college students report being under 25 years old, whereas the other half report being above.
- Employment status: Online education students are typically full-time employed professionals, with 80% reporting employment.
- Gender: Young adults, especially women, are beginning to make up a large portion of online enrollment due to its flexibility.
- Geography: Those residing in rural areas or living far away from accredited major universities are increasingly turning to online programs to access top-tier education at a discounted rate.
Most popular online programs and degrees
Certain online programs have consistently dominated enrollment in recent years, with business degrees, particularly those in management, marketing, and finance, having been the most popular. However, healthcare programs such as nursing, public health, and health administration have also grown in popularity due to increased workforce demand, as outlined by 2023 data gathered from Statista.
That very same report also outlines how, at the undergraduate and graduate level, online programs related to computer science and information technology have been on the rise with the advent of artificial intelligence. Considering that 26% of U.S. students now use AI for schoolwork too, according to 2024 data from Pew Research Center, it's clear that popularity with this technology will continue from both an educational and practical standpoint.
Motivations and preferences: Why students choose online
Online education can be a strategic choice for many aspiring students, but the motivation behind the decision can vary. Some students report the flexibility through asynchronous learning to be particularly appealing, allowing them to stack coursework around full-time jobs and caregiving. Others report that the costs saved on relocation, commuting, and housing are the main drivers.
Further still, some claim that the blend of accelerated course calendars coupled with a robust menu of available education programs is the most enticing aspect. Regardless, it’s clear that budding students place an emphasis on work-life balance, transparent pricing, and clear career outcomes when choosing whether to enroll in person or online.
Implications for traditional institutions
The implications of increased online enrollment on traditional institutions differs depending on the scale of the institution in question. Large, national colleges and universities with expansive budgets have managed to implement online units, meaning recent trends have created an additional durable stream of revenue.
However, this is offset by the fact that online enrollment intensifies competition among different institutions, with students being able to compare dozens of programs regardless of where they live. Brand recognition still carries weight, which has allowed larger colleges to weather the increased competition, but smaller institutions that rely on local talent may start to feel the effects.
Future outlook and challenges
Steady growth in online enrollment is what the vast majority of experts agree should be expected as 2030 looms closer. Considering the industry is estimated to have a 14% CAGR through 2032 according to Global Market Insights, Inc., it's unlikely that investment in this field will slow. Employer acceptance of online education degrees also continues to remain strong, which bodes well for institutions and students alike.
Despite all these benefits, there are still three issues to keep an eye on. Retention and engagement rates among fully online students are still a subject of concern, given the greater amount of distractions being fully digital poses. Additionally, policymakers have begun to increasingly scrutinize the portrayed value and consumer information offered up during the sign-on stage in distance education. Institutions will most likely need to start publishing clear and substantiated outcome metrics alongside future digital expansion efforts, which will cost both time and money.
The evolution of digital learning
Online learning has undoubtedly become a structural pillar of the education system in the United States and beyond. With one quarter of domestic students studying completely online and over half engaging with online courses in one way or another, as derived from the NCES report, digital learning is here to stay. By expanding access to older, working, and location-bound students, industries across business, health, tech, and more will all benefit from a bolstered future workforce.
Education is no longer a geography-constrained market, and it’s clear that traditional institutions will either need to implement high-quality and outcome-driven online offers with robust support or choose to cede to the rising competition.
This story was produced by Scholarship Institute and reviewed and distributed by Stacker.