Community colleges remain one of higher education’s strongest pathways to economic mobility, according to a new report that found associate-degree programs continue to excel in affordability while delivering positive returns for many graduates.
The 2026 State Opportunity Index from Strada examined how well states connect postsecondary education to career success. The report evaluated five areas tied to post-completion outcomes: clear outcomes, quality coaching, affordability, work-based learning and employer alignment.
Among public college graduates nationwide, 60% of associate-degree holders are expected to experience a positive return on investment within 10 years, meaning the earnings boost associated with their degree is enough to offset the cost of earning it.
The outlook varies by state. Alaska, Maine and Vermont posted the strongest returns, with at least 70% of recent associate-degree graduates projected to achieve a positive return on investment within a decade. Colorado and North Dakota ranked at the bottom, with 50% or fewer graduates expected to reach that benchmark.
The report found that some of the largest strengths for associate-degree programs are affordability and student support.
Leading on affordability
Affordability at public two-year colleges remains strong across the country. Thirty-five states earned the report’s highest rating for associate-degree affordability, while another 13 received an “Advanced” designation. For the first time, no state fell into the lowest category.
In 25 states, the average community college student could cover annual educational expenses by working fewer than 10 hours per week during the academic year. In another 22 states, students could cover costs with 10 to 20 hours of weekly work.
By comparison, affordability challenges remain more pronounced at the bachelor’s-degree level, where most states continue to fall into the Developing or Foundational categories.
Researchers attributed many affordability gains to a combination of stable tuition prices, increased wages and targeted financial aid programs.
Career coaching shows promise
Quality coaching also remains a bright spot for community colleges. Seventeen states were rated Advanced in providing education-to-career coaching for associate degree students, compared with just five states at the bachelor’s-degree level. No state received a Foundational rating for associate-level coaching.
Community college students reported receiving labor market information and career guidance at higher rates than students pursuing bachelor’s degrees. Students were most likely to receive information about career pathways and job opportunities connected to their fields of study.
Louisiana and Tennessee improved their ratings this year, largely because of gains in personalized guidance and advising.
The report noted, however, that students are still less likely to receive information about expected earnings and employment outcomes for graduates in their specific academic programs.
Work-based learning remains an opportunity
While associate-degree programs performed well on affordability and coaching, the report identified work-based learning as an area for improvement. Nationally, 14% of community college students reported participating in paid internships, apprenticeships, co-ops, practica or undergraduate research experiences, a slight decline from 17% in the previous report.
Arizona, Arkansas, Kansas and North Dakota were among the leaders, with at least one-quarter of community college students reporting participation in paid work-based learning.
Researchers noted that community college students often have different goals and circumstances than students at four-year institutions. Certificates account for 44% of community college awards, many students transfer before earning a degree, and roughly one-third of community college students report working at least 30 hours a week while enrolled.
Those realities, the report said, underscore the need for flexible work-based learning models that fit the schedules and career goals of community college students.
