Breaking the Binary: Recognising the Modern Learner with Micro-Credentials

Higher education in Australia is at a tipping point. Rising living costs, shifting work patterns, and complex personal circumstances are pushing more students out of university. One in four domestic students who began a bachelor’s in 2017 had dropped out by 2022, and only 62% completed their degrees [1]. With financial stress now the number one reason students are considering leaving this is likely only going to increase [2].

I strongly believe that our higher education system can and should do more to serve undergraduate students who are facing these pressures – and that stackable credentials can play an important role in recognising their progress, however incremental. The binary model — graduate or dropout —no longer reflects the lived experience of modern undergraduates.

The Learner Has Changed, But the System Has Not

Universities are still geared around an operating assumption that learners study full-time for three to four years, uninterrupted. But that’s no longer the norm. What was once typical for postgraduates — balancing study, work, and other responsibilities — is now the default for undergraduates too. Most students work while studying, and a growing proportion come from low socioeconomic backgrounds, where education must fit around real life — not the other way around.

Flexibility isn’t just a convenience. For many students, it’s the only way study is possible. If we continue to expect students to conform to outdated models, we’ll continue to lose them.

Meanwhile, competitors with more agile business models have adapted. Online-first platforms like Coursera, edX, Udacity, and LinkedIn Learning are setting the pace—offering modular, career-aligned credentials at global scale, often faster and cheaper than traditional providers. They’re built for today’s learners—and they’re winning them. Universities that fail to respond risk losing relevance with the very cohort they aim to serve.

The figure shows the number of micro-credentials offered on Coursera (MasterTracks, Professional Certificates, Specialisations and University Certificates), edX (MicroBachelors, MicroMasters, Professional Certificates, Professional Education and XSeries), FutureLearn (Academic Certificates, ExpertTracks, Micro-credentials and Programs), Kadenze (Programs) and Udacity (Nanodegrees), LinkedIn Learning (Path). Source: Class Central

The Strategic Imperative Is Clear, But the Path Isn’t

Micro-credentials and short-form learning offer a future-focused response to a system no longer aligned with student needs. They provide recognition at every stage of the learning journey—particularly valuable for students who don’t complete a full degree—and support real-world skill development that employers value.

But while the opportunity is clear, most universities haven’t cracked the model. Many don’t know whether, or how much, to invest. The risk is real: invest too little and fall behind; invest blindly and burn resources. The OECD (2023) highlights the core issue—there’s limited global data on long-term value, labour market outcomes, and scalable delivery models for micro-credentials [3]. Without clarity, universities are left navigating without a playbook.

Currently, most micro-credential strategies target postgraduate and professional learners. That’s understandable—these students are career-oriented, time-poor, and motivated to upskill. But it leaves a major opportunity untapped: the undergraduate market. Fewer than 15% of undergraduates currently engage in short-form learning, despite growing financial pressure and a clear need for flexible, stackable pathways that accommodate part-time study and work [4].

Expanding micro-credentials for undergraduate students could unlock greater retention, broader access, and a sharper value proposition for institutions.

Universities Must Act—Or Be Left Behind

Done well, micro-credentials don’t just boost competitiveness—they improve retention and meet the needs of modern students. Stackable, credit-bearing options give students recognition for progress, not just completion. For those facing financial pressure or complex personal circumstances, that recognition can be the difference between disengaging and continuing—or between dropping out and still finding meaningful employment.

This is no longer a question of if micro-credentials matter. The only question is how quickly universities embed them into strategy. Those that do will lead. Those that don’t risk losing students, market share, and long-term relevance.

The future belongs to institutions that break the binary, rethink the learner journey, and design education around how people actually live, work, and learn today.

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AptoNow have recently worked with a large West Australian university to help them shape their future Short Form Learning strategy and operating model. If you would like to find out how we can help your institution better meet the needs of today’s students, please reach out.

Sources:

1. Australian Government Department of Education – Undergraduate Completion Rates (2023 release)

2. Tertiary Education Quality and Standards Agency (TEQSA) – Student Finances and Wellbeing Report (2023), referencing data from the 2023 Student Experience Survey (administered by QILT).

3. The Emergence of Microcredentials in Australian Higher Education (2023), National Centre for Student Equity in Higher Education (NCSEHE) / Deakin University.

4. OECD (2023) Micro-credentials for Lifelong Learning and Employability: Uses and Possibilities.