New federal and clearinghouse data show undergraduate growth this fall was concentrated in community colleges and short‑term credentials, undercutting demand for traditional four‑year degrees. The National Student Clearinghouse reported overall postsecondary enrollment rose about 1% in fall 2025, with community colleges adding roughly 173,000 students—nearly double the new enrollments at public four‑year institutions. The rise reflects stronger interest in associate degrees and certificate programs amid affordability concerns and a tough entry‑level job market for recent bachelor's recipients. Analysts point to cost differentials—average in‑district two‑year tuition remains far below public four‑year rates—and tighter labor market dynamics that favor workforce‑aligned credentials. Institutions should expect continued pressure on private nonprofit four‑year colleges, while community colleges and credential providers face capacity and advising demands as they absorb new cohorts seeking cheaper, career‑focused pathways.