
Student Retention in 2025: Why Time Management is the Key to Success for Colleges and Students
Student retention might just be the most important challenge facing higher education today. According to the National Student Clearinghouse Research Center, only about 60% of students who start at a community college earn a degree within six years. For small four-year colleges, the retention rate is even lower, at about 50%. Across the board, large percentages of students who enroll and invest in higher education aren’t actually walking away with a degree.
This trend is not only drastically changing the trajectory of many students’ lives, but it’s also negatively impacting the reputations and bottom lines of the institutions they decide to leave.
So, what’s the solution?
With all of the individualities and nuances between higher education institutions, it can seem like there is no silver bullet to fix the retention crisis. However, there are timeless and foundational principles that, when taught practically to students, have proven to make them more committed to their goals, more prepared to achieve them, and much more likely to stay. One of the most prevalent of these principles is time management.
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The Harsh Costs of Low Retention in Higher Education
The decision to drop out of college or university can completely change the life path a student is on. Not only do they lose the investments they’ve made, financial and other, but they also continue to lack the education and credentials to set them up for a successful career. Imed Bouchrika, Phd writes that “college dropouts tend to earn 35% less annually than graduates, are more likely to live in poverty, and often face significant financial difficulties due to a lack of higher education credentials.”
And students aren’t the only ones who suffer when retention is low.
Student retention is vital to the bottom line of higher education institutions. Colleges and universities rely on tuition and fees to generate revenue, and when students drop out, they lose that income. According to the National Student Clearinghouse Research Center, the average community college loses $10,000 in tuition and fees for every student who drops out. For four-year colleges, the average loss is $21,000. This means that a college with an enrollment of 10,000 students and a 10% dropout rate would lose around $1-2 million in tuition and fees each year. That is $1-2 million that could go towards providing greater education, improving initiatives, and further achieving institution visions and goals.
Student retention is also a leading factor in institution reputation. Colleges and universities with high dropout rates are seen as less prestigious, making it difficult to attract top students and faculty members, and often leading to decreased endowments or other university funding.
Above all, student retention is foundational in helping colleges and universities achieve their mission of educating and preparing students for successful careers. Of the institutions we’ve worked with, almost all of them had “Student Success” as their number one priority in their strategic plan.
To increase student retention, it’s important to understand why students drop out in the first place. With that knowledge, colleges and universities can provide programs and resources that build students up and support them on the path to graduation.

Finding Clarity in Drop-out Drivers
Why do students drop out of college? It’s hardly a new question, and the findings have been consistent. Professor Vincent Tinto from Syracuse University wrote a piece about student retention, particularly during the first year of college. He puts it this way:
“Unfortunately, more than a few students enter the university insufficiently prepared for the rigors of university study. For them, as well as for others, the availability of academic support for instance in the form of basic skill courses, tutoring, study groups, and academic support programs such as supplemental instruction is an important condition for their continuation in the university.”
In short, most students are dropping out because they aren’t able to manage their new, academic lifestyle, requiring extra support from their institution. This new lifestyle includes:
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Financial Problems
Many students struggle to pay for college, leading them to work while attending school or be faced with substantial loans. Working a full or part time job while also attending college can be incredibly overwhelming. Struggling to manage time between academia and work often leads to poor performance in both areas and may eventually lead them to drop out.
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Academic problems
Even exceptional high school students might not be prepared for the rigors of college-level coursework in a competitive environment. First-generation students often have no idea what to expect at all. Students who are overwhelmed academically are more likely to withdraw.
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Personal problems
Students transitioning into adulthood are faced with the new challenges of managing their schedules, finances, responsibilities, relationships with roommates and professors, and sometimes family or health problems. This is often the first time young adults are confronted with these issues on their own, and this increase in stress can cause students to drop out.
It’s also important to remember that these issues are not mutually exclusive. Students are often balancing them all at the same time. Handling an influx of academic requirements, personal life upkeep, financial responsibility, and work all at the same time is entirely overwhelming students, making them question if all of the sacrifice of higher education is worth it.
Luckily, however, we’ve figured out that these three types of problems are majorly caused or amplified by the same persistent struggle between students: a lack of time management.
College Success Plan reports that 78% of students claim to struggle with time management throughout their college experience, with an additional 9% claiming to “always” struggle with this.
The lack of time management proficiency means many students are feeling the stress of all of these responsibilities without the skills to know how to organize, prioritize, and act on them. This combined with the many forces fighting for their attention and time is putting them in academic situations they no longer feel they can sustain.
Students who lack these skills will certainly struggle in challenging academic environments. But colleges and universities don’t have to leave them to fight alone.

How Time Management Flips the Script for College Students
So, if you’ve skipped ahead, here is the overview:
- Higher education is currently plagued with low retention rates
- This crisis is caused by stress induced by the students’ struggle to balance financial, personal, and academic responsibilities
- Time management is the timeless, foundational principle and skillset that would help alleviate their stress
- Thus, time management is the key to improving student retention
The University of Georgia backs this up, writing that students who practice good time management achieve higher grades, retain information more effectively, and perhaps most importantly, experience significantly less stress.
They also report that these students have “higher levels of satisfaction with their academic experiences, contributing to overall well-being and success. Effective time management not only enhances academic performance but also promotes a balanced and fulfilling student life.”
These incredible results are possible because time management is so much more than simple scheduling or gimmicky practices. Read the way it is talked about by Stephen R. Covey who describes the principle of time management as “putting first things first”:

Putting first things first means organizing and executing around your most important priorities. It is living and being driven by the principles you value most, not by the agendas and forces surrounding you.
It’s common to think that managing our time is about managing the clock, but it’s really about managing the compass. Every decision we make about how to spend our time should be oriented toward what’s most important. Our personal mission should be our true north.
Now imagine students in your institution wholly understanding this concept and applying it in their lives: identifying their true north and “putting first things first”. It becomes easier to see how:
Time management keeps students focused on their priorities. It’s easy to get distracted in college, but effective time management helps students prioritize what matters most, ensuring they make consistent progress toward their goals.
Time management teaches students to plan and adapt. Learning to create schedules, set deadlines, and adjust plans when things go off track is essential in our unpredictable lives. These skills empower students to navigate challenges without losing momentum.
Time management builds a foundation for lifelong success. By mastering time management, students develop other critical skills, such as organization, self-discipline, and decision-making. These abilities not only enhance their academic journey but also prepare them for professional and personal success.
Take Time to Develop Students’ Time Management Skills
Luckily, colleges and universities are uniquely positioned to help students develop these crucial time management skills and improve their revenue-producing retention.
Integrating this academic support can come in whatever form is most seamless and effective for the individual institution. Courses, textbooks, programs, co-curricular activities, mentors, or other methods all be effective as long as the initiatives focus on the students deeply learning true and timeless time management principles.
For example, “The Impact of a College Survival Skills Course and a Success Coach on Retention and Academic Performance” by Samuel Lester and Ivan Allen found that by implementing a “College Survival Skills Course” helped improve retention numbers after just the first year of the course launch.
Similar First-Year Experience programs at many colleges and universities provide first-year students with a variety of support services, such as academic advising, tutoring, and peer mentoring. These services can be elevated to introduce these time management skills to the students, helping them succeed earlier in college and reduce their risk of dropping out.

The TRIO Programs offered through the U.S. Department of Education also provide academic support and other services to low-income and first-generation college students. These programs have been shown to be effective in increasing student retention and time management skills.
Ultimately, it depends on the individual needs of the institution. For example, our higher education teams at FranklinCovey have been able to teach the same 7 Habits framework we use on Fortune 500 Companies, including the training on time management, into every size, type, and stage of institution. We’ve seen courses seamlessly integrate our textbooks and reading material through Canvas, mentorship programs adopting the 7 Habits, first-year classes built around the simple content structure, and more. Yet, no matter the medium, teaching these principles to students consistently shows a decrease in stress and an increase in time management skills, retention, and revenue for the institution.
The 7 Habits of Highly Effective College Students
Read about the habit that is changing campus retention across the world.col
The truth is, students need help or they will continue to drop out. The sooner we can act and get them the support they need, the more likely they are to stay. Then they can grow into the types of students who are equipped to mentor others, who become leaders on campus, and eventually loyal and influential alumni. A small investment in programs and resources based on developing persistence and other critical soft skills will yield significant dividends for students and their schools for years to come.
See how the 7 Habits can easily integrate into your programs and change the lives of your students.