New Insights on Sources of Credit Loss*

Many students who transfer between postsecondary institutions lose credits, which may sap academic momentum and increase college costs. Despite anecdotal evidence of major credit loss (MCL), where students cannot apply transferred credits toward their major, data limitations have hindered analyses of its magnitude or causes. Using novel administrative data in Texas, we measure MCL for a statewide sample of 2020–2022 vertical transfer students, compare it to estimates of general credit loss (GCL), and examine how it varies across student populations, majors, and universities. Our analyses show that MCL is roughly as prevalent as GCL and varies considerably across universities. Our results suggest promising directions for research and reforms that may mitigate credit loss.