The engine of Virginia’s economy runs on human talent — from the coalfields of the great Southwest to the technology hubs of Northern Virginia — and Virginia’s private colleges are helping to meet these workforce needs and positively impact the state’s future. While recent federal policy and budget changes threaten access to and the affordability of higher education —negatively affecting our domestic talent pipeline — Virginia’s policymaker and budget leaders must act to keep the commonwealth competitive.
Virginia private colleges help to meet the needs of the state workforce. Our graduates possess the knowledge and critical thinking skills that have real impact. This impact is reflected in new data commissioned by the Council of Independent Colleges in Virginia (CICV), which engaged Mangum Economics to analyze the human and economic value of private higher education across the commonwealth. Released on October 20, CICV’s Economic Impact Report on Human Capital confirms what business and community leaders already know: Virginia’s 28 private, nonprofit colleges and universities are vital engines of workforce talent and growth opportunity.
Many of our Virginia private colleges are in areas where public universities have limited or no presence — Southside, Southwest and the Shenandoah Valley — providing access and opportunity where it is needed most. Each of these colleges serves as a regional anchor, generating jobs, driving local spending and preparing students for meaningful work. But the most powerful contribution is a talented Virginian equipped to teach in our schools, care for our patients, start new businesses or serve in their communities.
CICV’s research shows that private colleges meet a substantial share of Virginia’s workforce needs in fields such as education, health care, business and psychology — sectors that are vital to regional stability and growth. In the 2023–24 academic year, CICV institutions awarded nearly 40,000 degrees, certificates and credentials (17,664 bachelor’s, 12,403 master’s, 3,356 doctoral-research, 3,260 doctoral–professional, 3,060 certificates and 1,270 associate’s degrees). Those graduates added an estimated $161.6 million in new annual labor productivity to Virginia’s economy, with a lifetime value of $2.3 billion.
In several high-demand occupations, these institutions alone supply more than half of the graduates required to fill statewide demand. Virginia private colleges produce approximately 40% of all nursing degrees statewide. This output creates real economic returns. The 2023–24 graduating class from Virginia’s independent colleges supports 665 additional jobs and nearly $19 million in annual state and local tax revenue.
Virginia students attending and graduating from nonprofit private colleges can achieve their goals with the support of the Virginia Tuition Assistance Grant (TAG), currently a $5,250 award. TAG remains one of the state’s most cost-effective tools to ensure that every Virginian, regardless of income or region, has the chance to pursue an education, build a career and improve their family’s future. For a modest investment in TAG, Virginia receives a measurable, recurring benefit that few public programs can match — a 2:1 return on the state dollar. Behind every TAG award is a student whose opportunity changes not only their own life but also the communities they will serve.
Contained in our recent report are the faces of real Virginians whose lives and communities are better because of educational opportunities. Data is more than numbers. It represents real people. For example, a first-generation student from Harrisonburg earned dual degrees at Mary Baldwin University and is now pursuing a Juris Doctor at the University of Richmond. A Shenandoah University alum opened a direct-care medical practice that brings affordable health care to the Shenandoah Valley. Two University of Richmond graduates created Absurd Snacks, a successful allergy-friendly food company now sold in major grocery chains. And a Marymount University student, the school’s first biomedical engineering graduate, now works at the U.S. Patent and Trademark Office. These are not isolated stories; they are the result of educational access, affordability and our public/private partnership at work.
Regrettably, Virginia’s proven system of access and results now faces serious federal headwinds. Congress’s sweeping budget reconciliation bill — H.R. 1, the “One Big Beautiful Bill” — fundamentally reshapes federal student aid. The measure eliminates Graduate PLUS loans, caps Parent PLUS borrowing and narrows Pell Grant eligibility while proposing cuts to Supplemental Educational Opportunity Grants and Federal Work-Study. It also expands compliance costs and introduces new excise taxes that divert campus resources from students. CICV’s financial analysis estimates more than $200 million in lost loan capacity for students and projects enrollment declines of 5 to 15% statewide — up to 12,000 fewer Virginians enrolled in college.
For this reason among others, Virginia private colleges are grateful for the State Council of Higher Education for Virginia (SCHEV) that recently embraced increasing the maximum TAG award to $5,350 over the next biennium, but with these federal changes to Pell eligibility, new federal loan caps and the proposed cuts to Federal Work-Study, TAG is more important than ever and instead needs to move to $5,500 and $6,000 over the same period. (The state cost for every $50 increase in the award is approximately $1 million.)
For students and families, these federal changes mean fewer options and greater reliance on private borrowing where many families will not qualify. For Virginia’s economy, these federal changes threaten to shrink the talent pipeline that powers our workforce. Federal retrenchment does not have to mean Virginia follows suit. The commonwealth has a long and bipartisan tradition of supporting educational access and regional equity. By sustaining and strengthening the Tuition Assistance Grant and finding other avenues for public-private partnership, lawmakers can ensure that every Virginian — whether from Martinsville or Manassas — can gain an education, launch a career and give back to the communities that raised them. Increasing TAG will help keep college within reach for working- and middle-class families and ensure that bright students, regardless of ZIP code, can study, work and stay in Virginia.
If Virginia’s state legislative policymakers fail to address the challenge presented by Washington in the upcoming General Assembly, the cost will be measured not only in lost dollars but also in lost potential, innovation and leadership. However, if the commonwealth chooses to invest —strategically, consistently and collaboratively — it can remain a national model for education-driven growth. When we invest in students, we invest in Virginia’s future. The stories confirm it. The numbers prove it.
Chris Peace is President of the Council of Independent Colleges in Virginia (CICV), which represents 28 accredited, nonprofit private colleges and universities across the commonwealth.