By Emily Salmon and Taylor Clark

Higher education is experiencing a period of momentous change and uncertainty. Changing demographics are reducing the number of potential students; parents and students are increasingly demanding career preparation; businesses want employees who are ready for the workplace; and changes at the federal level have added uncertainty. While often said, it may never have been more true: higher education is at a crossroads.

While it is still true that a college degree is more likely to lead to economic mobility for most students than just about any other commitment, the picture is more nuanced today than ever. Certain majors produce higher lifetime earnings, and some majors appear to be declining in terms of employer demand. The cost of higher education, a public policy issue that dates back as far as the 1800s, has become more likely to prevent students from pursuing a postsecondary credential as other, less costly alternatives have surged in popularity.  Long taken for granted, assumptions surrounding the value of higher education are more likely to be questioned today.

As confidence in higher education has shifted and consumers have become more skeptical, the sector must do more than simply seek to enroll more students – it must offer a new, clear value proposition.  

Developing Tomorrow’s Talent: The Virginia Plan for Higher Education responds to this moment. Adopted by the State Council of Higher Education for Virginia (SCHEV), the Plan sets a strategic course to position the Commonwealth as the Top State for Talent—Learning to Leading by focusing on what matters most: student readiness, institutional responsiveness and the demonstrated relevance of higher education. It offers an intentional, outcomes-driven approach to higher education.

A Clear North Star: Credentials of Value

At the center of the Plan is a simple but ambitious goal: to increase the number of Virginians earning credentials of value—degrees or credentials that lead to good jobs with career advancement as well as economic and social benefits. While Virginia currently ranks among the top states nationally, persistent gaps across student groups signal that opportunity is not evenly distributed. And in the race for talent, there is little reward for second place.

The Plan prioritizes reaching learners who often have been overlooked in traditional models, including adult learners, individuals with some college but no credential and workers seeking short-term pathways to advancement. SCHEV is developing a Virginia-specific index to better measure credentials of value. For now, we can use data from the Lumina’s Foundation’s Goal 2040 as a placeholder until the new index is created. Regardless of which measure is ultimately used, the goal is clear: ensure credentials lead to relevance and value for the student.

Source: Lumina Foundation

READY: Preparing Students for Work and for Life

Readiness is not just about academic preparation; it is about persistence, employability and civic knowledge. The Plan measures readiness through student retention and employment one year after graduation—two indicators that reflect whether students are prepared to navigate both higher education and the workforce.

By emphasizing holistic preparation and closing retention gaps across institutions, the READY goal recognizes that student success depends on more than coursework alone. It also recognizes that most students enroll in postsecondary education for one purpose – finding employment.

RESPONSIVE: Institutions That Adapt to Change

Students, employers and communities are changing—and institutions must keep pace. The RESPONSIVE goal measures how effectively colleges and universities adapt to evolving student needs and labor market demands.

Completion rates and time to degree serve as indicators of institutional agility. A student entering an academic program that is supposed to take four years could see monumental changes in the labor market before they complete a degree. And many students don’t finish an undergraduate degree in four years.  Longer time to completion also adversely impacts affordability for students, who will spend extra tuition and fee revenue for each additional semester they spend earning a credential.

Community college success is measured through credential attainment, transfer and continued enrollment, reflecting the diverse pathways these institutions support.  For years, community colleges have been evaluated by metrics more attuned to the needs of four-year public institutions. Value contributed by these institutions has been overlooked by focusing too narrowly on definitions of success.  The Richmond Federal Reserve’s five-factor success rate better captures the full range of student outcomes and the true value community colleges deliver.

Workforce alignment is tracked by the share of graduates completing programs tied to high-growth occupations, reinforcing the connection between education and economic demand.

RELEVANT: Rebuilding Confidence in Higher Education

For higher education to remain viable, Virginians must see its value clearly and early. The RELEVANT goal focuses on college participation following high school, using enrollment within 16 months of graduation as a measure of perceived value and accessibility.

Improving participation is not solely about recruitment—it is about affordability, transparency and clearly communicating how postsecondary education pays off for students and the Commonwealth. To state it differently, the consumer needs to be persuaded of the value of what they’re purchasing before making a significant commitment that in most cases, will create a decade or more of student loan payments.

Why It Matters

The challenges facing higher education are complex and interconnected. Addressing them will require sustained collaboration among institutions, employers, policymakers and SCHEV. But the payoff is significant.

By centering readiness, responsiveness and relevance, Virginia’s new strategic plan offers a new, clear value proposition for higher education as a driver of economic growth, social mobility and public trust. Developing tomorrow’s talent is not an abstract aspiration—it is a necessary strategy for the Commonwealth’s long-term prosperity.