New data from the National Student Clearinghouse shows a decade-high level of new undergraduate enrollments concentrated in community colleges and certificate programs. Overall undergraduate enrollment rose by 1.2% to over 16 million, but nearly all growth came from two-year institutions and short-term credentials, with community colleges adding roughly 173,000 students last fall. Students cited cost, career alignment and concerns about the four-year degree’s return amid a tight entry-level labor market and AI-driven role changes. Private nonprofit four-year institutions saw net declines in new students. The pattern reflects a rapid reorientation toward lower-cost, career-focused pathways. University admissions and strategy teams must reckon with this market shift by expanding stackable credentials, partnerships with employers, and clearer ROI messaging to prospective students—especially as fiscal models tied to traditional bachelor’s enrollment face pressure.