Demand for University Credit Transfer on the Rise

Written by NU Editorial Contributors

Academically reviewed by Dr. Federica Fornaciari

A new study by National University reveals that interest in credit transfer has been on an upward trajectory since 2021. This variation not only reflects changing student behaviors but also signals a broader shift in how students approach their educational journeys.

Key Takeaways

• From August 2021 to January 2025, search interest for credit transfer for universities increased from an average of 35 to 73 on a scale of 100.
• Students lose 43% of credits on average during transfer.
• Institutions with high credit acceptance rates (>90%) see graduation rates 2.5 times higher than those with lower acceptance rates

Seasonal Patterns

Over the study period, average yearly search interest demonstrated a consistent upward trend. For instance, during the first year (August 2021 to July 2022), the mean search interest hovered around 55, increasing to approximately 60 in the subsequent year and reaching nearly 67 in 2024 and 73 in January 2025. In addition to this year‐over‐year increase, the data also reveals distinct seasonal patterns. Peak search activity routinely occurs in August, while the lowest values are regularly observed in November.

At the regional level, the District of Columbia ranks first with a search interest score of 100, followed by Delaware (80) and Michigan (76). States like Nevada, California, and Florida show the lowest interest in credit transfer.

Lost Wages

Despite the large increase in interest, transferring credit could be difficult to navigate. “As institutions face the challenge of credit loss, as high as 43% on average during transfers, it becomes critical to reimagine the evaluation process,” explains Dr. Federica Fornaciari, Professor and Academic Program Director for the MA in Strategic Communications Program at National University. This loss can delay graduation and result in an estimated $15,400 in lost wages, according to data from the Center for Higher Education Policy and Practice. Furthermore, those who never complete their degrees risk forfeiting up to $600,000 in lifetime earnings. 

Institutional friction further compounds these challenges: transcript holds, and associated fees create financial barriers; a standard 28-day evaluation delay complicates timely course registration; and nearly 45% of transfers end up repeating coursework due to misalignment. However, Dr. Fornaciari points to promising solutions: “We must prioritize the implementation of AI-powered transcript analysis systems that have been rigorously tested for accuracy and fairness, ensuring they prevent problematic errors or bias while significantly streamlining and modernizing credit transfer protocols. By investing in AI-driven solutions that prioritize transparency and reliability, alongside digital credential systems, we can create a more agile and responsive framework, ultimately enabling students to achieve their academic goals faster and with greater flexibility.” These AI-driven systems have shown the potential to reduce processing time from 28 days to 72 hours.

Modular approach

Some innovation hubs have emerged as pioneers in refining transfer practices, for instance, Washington DC, Michigan, and Delaware, demonstrating high successful transfer rates and innovative credit-recognition policies that preserve student progress and enhance retention. “The data suggests that students are increasingly embracing a modular approach to their degrees—assembling their educational journey from multiple institutions rather than following a linear, single-campus path,” notes Dr. Fornaciari. “This paradigm shift is fueled by both the economic ramifications and the broader trend toward customization in education.”

“Institutions must closely track how technology is transforming credit transfer processes,” Dr. Fornaciari emphasizes. “The data clearly shows that streamlined transfers lead to better graduation rates, making this a key metric for institutional success. Those who stay ahead of these developments will be better positioned to enhance both student success and their institutional standing.” This observation is supported by CHEPP data showing that institutions with high credit acceptance rates (>90%) see graduation rates 2.5 times higher than those with lower acceptance rates.

Methodology

This study employs a mixed-methods approach combining quantitative analysis of Google Trends search interest (0–100 scale) with institutional transfer metrics over the period from August 2021 to January 2025. Data sources include Google Trends and data from the Center for Higher Education Policy and Practice. The analysis framework encompasses temporal trends (weekly tracking, seasonality, year-over-year comparisons), geographic patterns (state-level comparisons and identification of innovation hubs), and an economic impact assessment (credit loss quantification, wage and cost penalty calculations).

Conclusion

The rising demand for university credit transfers underscores a fundamental shift in how students approach higher education. With search interest nearly doubling since 2021, it’s clear that students increasingly seek flexible pathways to degree completion. However, the challenges associated with credit loss, institutional barriers, and financial setbacks remain significant obstacles.

Institutions that prioritize seamless transfer processes leveraging AI-powered transcript evaluations and modular degree structures stand to benefit from higher retention and graduation rates. As data shows, universities with high credit acceptance rates achieve significantly better student outcomes. Moving forward, higher education institutions must embrace technological advancements and policy reforms that make credit transfers more efficient, reducing financial burdens and ensuring students achieve their academic and career goals with fewer setbacks.

By addressing these issues head-on, universities can not only improve student success but also strengthen their competitive standing in an increasingly flexible and student-driven education landscape.

Additional Resource

The Costs Of Today’s College Credit Transfer System For Learners And The Mindsets And Practices That Reduce Them.

This content has been reviewed and approved by the National University Editorial Advisory Board. Learn more about our editorial process.