Students can transfer for different reasons,  depending on their goals and the type of transfer involved. About a Third of College Students Transferred Schools from 2004 to 2009; Students May Face Challenges in Transferring Credits

		An Estimated 35 Percent of College Students Transferred, with Most Transferring Between Public Schools from 2004 to 2009

An estimated 35 percent of first-time students transferred schools over a  6-year period, according to Education’s most recent BPS data on  students who started in academic year 2003-04 (2004 cohort). Students can  also face challenges transferring credits between public and private  schools. Credits Lost in a School Transfer Could Result in Additional Tuition Costs and Limited Financial Aid Eligibility for Students

		Almost Half of Credits Earned Were Lost During Transfer from 2004 to 2009, and the Extent of Loss Varied by Type of School

Students lost an estimated 43 percent of college credits when they  transferred, or an estimated 13 credits, on average, according to our  analysis of BPS data on students who started in academic year 2003-04  and were tracked over a 6-year period. In  comparison, students who transferred from private for-profit schools to  public schools—which accounted for 4 percent of students who  transferred—lost an estimated 94 percent of their credits, on average. Students who took some of the less frequent  transfer paths lost a relatively higher percentage of their credits. Potential Tuition Cost for Transfer Students Depends, in Part, on Number of Credits Lost and Tuition Rates

Stakeholders from about half of the higher education organizations and  schools we interviewed said some students may seek to save on tuition  costs by starting at a less expensive school and then transferring to a  more expensive school to complete a degree. Stakeholders we spoke with from one school said that students  who are transferring between 4-year schools may not have been planning  to transfer, and it is more difficult to advise students about which credits  will transfer laterally. Many Transfer Students Received Federal Financial Aid from 2004 to 2009, and Credit Loss Can Limit Students’ Eligibility and Result in Additional Costs to the Federal Government

Almost half of transfer students received Pell Grants and almost two- thirds received Federal Direct Loans, according to our analysis of BPS  data collected between 2004 and 2009. Almost All Schools Provided Credit Transfer Policies on Websites, but Comprehensiveness of Information Varied

		Almost All School Websites Disclosed Credit Transfer Policies, but Not All Were Clear About Agreements with Other Schools on Transfers

Under federal law, schools participating in any Title IV program are  required to publicly disclose the transfer of credit policies established by  the school, including a list of schools with which they have articulation  agreements. An estimated 29 percent of websites did not  provide such a list, while an estimated 4 percent explicitly stated that the  school did not have any articulation agreements. Based on  targeted follow-up with officials at 10 schools, we found that some did not  have articulation agreements while others had articulation agreements  but their partner schools were not listed on the website. We found that the transfer information was neither focused nor targeted  toward transfer students. Finally, according to student  complaint data, Education officials sometimes provided general  information on the transferability of credits in response to complaints  about transfer issues. According to federal internal control standards, agencies should  externally communicate the necessary quality information to help achieve  their goals. Transfers can affect the time and cost of completing a  degree. Knowledge of key considerations could help students and their  families make better-informed transfer decisions. When schools make information about these agreements  accessible on their websites, students can more easily understand their  transfer options. Recommendations for Executive Action

To help improve students’ access to information so that they can make  well-informed transfer decisions, we recommend the Secretary of  Education take the following two actions:
Require schools to (1) disclose the list of schools with which they  have articulation agreements online if the school has a website, and  (2) clearly inform students, on the school’s website if it has one, when  no articulation agreements on credit transfer are in place. (2) What are  possible financial implications associated with transferring credits? Interviews

To understand what challenges, if any, students face in transferring  credits, we interviewed stakeholders from a non-generalizable sample of  25 higher education organizations and schools. For example, students may not ask to have  their credits evaluated or they may decide to change majors, which would  make it difficult to attribute the costs of lost credits to the transfer process. We also assume that credits  that are transferred will count toward graduation requirements. The calculations for the financial implications for students do not  account for how students may use financial aid to offset out-of-pocket  tuition costs, so the identified costs may not all be borne by the students. Website Review

To determine the extent to which schools provide students with  information on transfers to help them plan their college path, we reviewed  websites from a nationally-representative sample of 214 schools  participating in federal student aid programs.
Why GAO Did This Study

College students sometimes opt to transfer schools in response to changing interests or for financial reasons. The extent to which students can transfer previously earned course credits can affect the time and cost for completing a degree. Given the federal government's sizeable investment in student aid—$125 billion in fiscal year 2016—and potential difficulties students may face in transferring credits, GAO was asked to examine the college transfer process.
GAO examined (1) transfer rates and challenges students face in transferring credits, (2) the possible financial implications of transfer, and (3) the extent to which students are provided with transfer information to help them plan their college path. GAO analyzed Education's data, including its most recent available transfer data from the 2004-2009 student cohort, interviewed a non-generalizable sample of stakeholders from 25 schools and higher education organizations, and reviewed a nationally-representative sample of 214 school websites.

What GAO Found

Based on GAO's analysis of the Department of Education's (Education) most recently available data, an estimated 35 percent of college students transferred to a new school at least once from 2004 to 2009, and GAO found that students may face challenges getting information or advice about transferring course credits. An estimated 62 percent of these transfers were between public schools. According to stakeholders GAO spoke with, students can face challenges transferring credits between schools that do not have statewide polices or articulation agreements, which are transfer agreements or partnerships between schools designating how credits earned at one school will transfer to another. Stakeholders also said that advising and information may not be adequate to help students navigate the transfer process.
The possible financial implications of transferring depend in part on the extent of credits lost in the transfer. Using Education's transfer data, GAO estimated that students who transferred from 2004 to 2009 lost, on average, an estimated 43 percent of their credits, and credit loss varied depending on the transfer path. For example, students who transferred between public schools—the majority of transfer students—lost an estimated 37 percent of their credits. In comparison, students who took some of the less frequent transfer paths lost a relatively higher percentage of their credits. For example, students who transferred from private for-profit schools to public schools accounted for 4 percent of all transfer students but lost an estimated 94 percent of their credits. Transferring can have different effects on college affordability. Students seeking to obtain a bachelor's degree at a more expensive school may save on tuition costs by transferring from a less expensive school. On the other hand, transfer students may incur additional costs to repeat credits that do not transfer or count toward their degree. Transfer students can receive federal financial aid. GAO's analysis showed that almost half of the students who transferred from 2004 to 2009 received Pell Grants and close to two-thirds received Federal Direct Loans. Students who lose credits may use more financial aid to pay for repeated courses at additional cost to the federal government, or they may exhaust their financial aid eligibility, which can result in additional out-of-pocket costs.
While GAO estimated that the websites for almost all schools nationwide provided credit transfer policies, as required by Education, about 29 percent did not include a list of other schools with which the school had articulation agreements. Among those schools, GAO found that some did not have any articulation agreements, while others did but did not list partner schools on their websites. Schools must provide such listings, but they are not required to do so specifically on their website. As a result, students may not have ready access to this information to fully understand their transfer options. Moreover, Education provides limited transfer information to students and their families, contrary to federal internal control standards that call for agencies to provide adequate information to external parties. General information on key transfer considerations that are applicable across schools and more complete information on schools' articulation agreements can help students avoid making uninformed transfer decisions that could add to the time and expense of earning a degree.

What GAO Recommends

GAO recommends that Education (1) require schools to disclose on their websites (a) the list of other schools with which they have articulation agreements and (b) when no such agreements are in place; and (2) provide general transfer information to students and families. Education disagreed with the first and agreed with the second recommendation. GAO maintains that students can more easily understand transfer options if information is accessible on a school's website, as discussed in the report.