Unpacking Financial Disincentives: Why and How they Stymie Degree-Applicable Credit Mobility and Equitable Transfer Outcomes (2023)

The white paper explores financial disincentives that hinder the efficient transfer of credits in higher education, particularly focusing on community colleges and their students. It argues that the prevalent practice of rejecting transfer credits without thorough evaluation undermines both student success and institutional reputations. The paper, guided by the Beyond Transfer Policy Advisory Board and supported by various educational bodies, offers insights into how these disincentives can be overcome through policy reforms and institutional changes.

Main Takeaways:

  • Financial Disincentives for Credit Transfer: Institutions often reject transfer credits to maximize immediate tuition revenue, a practice that can short-change students and lead to longer graduation timelines.
  • Recommendations for Institutional Change: The report suggests that institutions adopt more equitable credit evaluation processes and utilize financial tools like the TransferBOOST Affordability Financial Tool to understand the long-term benefits of accepting transfer credits.
  • State and Policy Level Changes: States are encouraged to revise funding models to incentivize institutions to accept more transfer credits and support student mobility.
  • Impact on Student Success: The practice of not recognizing prior learning and transfer credits disproportionately affects marginalized student populations, contributing to lower graduation rates and extended educational paths.