ACE, in collaboration with the MSI Data Project at New York University (NYU), has released a new report, Pathways to Opportunity: Examining Students’ Academic and Economic Outcomes at HBCUs, TCUs, and MSIs, that explores student outcomes at Historically Black Colleges and Universities (HBCU), Tribal Colleges and Universities (TCU), and Minority-Serving Institutions (MSI). This analysis found that these institutions play a crucial role in advancing economic mobility for students of color, underscoring how increased investment in HBCUs, TCUs, and MSIs is essential to expanding their impact.
HBCUs, TCUs, and MSIs are the backbone of American higher education, providing opportunities to millions of students of color, including low-income students and first-generation students. Nearly 20 percent of all higher education institutions qualify as HBCUs, TCUs, or MSIs, enrolling over half of all undergraduate students of color. Despite limited resources, these institutions provide accessible, affordable pathways to higher education. MSIs include Asian American and Native American Pacific Islander-Serving Institutions (AANAPISI), Alaska Native and Native Hawaiian-Serving Institutions (ANNHSI), Hispanic-Serving Institutions (HSI), HSI Science, Technology, Engineering, or Mathematics and Articulation Programs (HSI STEM), Predominantly Black Institutions (PBI), and Native American-Serving Nontribal Institutions (NASNTI).
“HBCUs, TCUs, and MSIs play a fundamental role in expanding access to higher education and economic opportunity,” said ACE President Ted Mitchell. “Despite facing significant resource constraints, these institutions consistently deliver strong outcomes, equipping students with the tools they need to thrive academically and professionally. We were thrilled to work with the MSI Data Project at New York University to showcase how these institutions benefit students and why we, as a country, should adequately fund these institutions.”
“Our study demonstrates the vital role that HBCUs, TCUs, HSIs, AANAPISIs, ANNHSIs, HSI STEMs, NASNTIs, and PBIs play in expanding educational access and fostering economic mobility for students," said Mike Hoa Nguyen, principal investigator at the MSI Data Project, assistant professor of education at New York University, and one of the report’s authors. "What makes this study particularly significant is that it offers a more comprehensive approach—examining MSIs that are often overlooked in research and distinguishing between institutions that are funded, eligible, and non-MSIs. In doing so, we provide a more nuanced understanding of how these HBCUs, TCUs, and MSIs serve students and where targeted support can make the greatest impact in advancing economic and student success through higher education."
The report builds upon previous ACE research on HBCUs and MSIs, and leverages data from the MSI Data Project to analyze postsecondary outcomes. Researchers examined trends in several categories, including degree completion, labor market earnings, and transfer rates among students at these institutions. Researchers also analyzed outcomes of undergraduates from the specific racial and ethnic groups served by each mission-based institution and enrollment-based MSI designation and how they compared to those at non-MSIs.
In general, researchers found that HBCUs, TCUs, and MSIs awarded more degrees and certificates to their target populations compared to other institutions. Additionally, the researchers found that MSIs receiving federal funding provided greater outcomes compared to eligible MSIs that do not receive funding, and both led to greater outcomes for students than other institutions. Key findings include:
- Increased Economic Mobility: Students who attend HBCUs, TCUs, and MSIs experience significant economic benefits post-graduation. Graduates of funded MSIs have median earnings that are often higher than those of their peers from similar institutions.
- Higher Graduation Rates for Low-Income Students: Pell Grant recipients at funded MSIs often graduate at higher rates than those at eligible-but-unfunded institutions.
- Increased Degree Attainment: HBCUs, TCUs, and MSIs consistently awarded more degrees to their target populations than non-HBCUS, TCUs, and MSIs. On average, HBCUs award 455 bachelor's degrees to Black students, compared to 146 at non-HBCUs, TCUs, and MSIs. Similarly, Hispanic-Serving Institutions award an average of 944 bachelor's degrees to Hispanic students, compared to 166 at non-HBCUs, TCUs, and MSIs.
- Enhanced Transfer Opportunities: HBCUs, TCUs, and MSIs serve as crucial transfer destinations for students of color. For example, on average, TCUs enroll nearly nine times as many Native American transfer students than non-HBCUs, TCUs, and MSIs.
The report underscores the need for increased federal and philanthropic investment in these institutions. While HBCUs, TCUs, and MSIs have historically operated with fewer resources than their counterparts, their contributions to higher education equity and economic mobility are well documented in this report. Expanding financial support to HBCUs, TCUs, and MSIs can enhance student success, improve workforce outcomes, and create greater economic opportunities for communities nationwide.
This brief adds to ACE’s growing portfolio of student-centered research. Last month, ACE, in collaboration with the Higher Education Research Institute at the University of California, Los Angeles, released a report highlighting the growing diversity of first-year college students. Additionally, ACE published an updated version of its Race and Ethnicity in Higher Education report last year, which revealed a continued increase in diversity but significant disparities in attainment levels among underrepresented groups by race and ethnicity remain.
“As this report makes clear, investment in HBCUs, TCUs, and MSIs is an investment in the nation’s future,” said Hironao Okahana, vice president and executive director of ACE’s Education Futures Lab and one of the report’s authors. “By ensuring that these institutions receive the funding they need, we can sustain and expand their transformative impact on student success. We were delighted to work alongside the MSI Data Project to share these critical findings.”
In addition to Nguyen and Okahana, this report was authored by George Spencer, Odorico San Nicolas, Lauren Lewallen, and Danielle Melidona.
The MSI Data Project, launched in March 2023, is a research initiative that provides comprehensive data on the funding and eligibility status of MSIs across the United States. The project aims to support research, policy analysis, and institutional decision-making related to the role of MSIs in higher education.
"This report leverages multiple nationally representative data sources to assess the success of MSIs across key postsecondary and labor market outcomes,” said Spencer, assistant professor at NYU. “Using a comprehensive approach, it highlights the strengths of these institutions while providing valuable insights for policymakers and educators to enhance student success through targeted support and identify areas worthy of further inquiry."