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Freshman retention rates at the University of New Mexico have hit an all-time high, which faculty members consider an important element in the institution's success.

Last year, 74.4 percent of UNM's freshmen class returned as sophomores. This year's retention rate jumped to 76.6 percent, said Peter White, dean of University College.

Retention of Hispanic students rose even higher, up from 73.1 percent in 2006 to 76.8 percent this year.

Since 1982, UNM has tracked the percentage of freshman students who return as sophomores.

The increase in freshman retention is a big deal for UNM and New Mexico, White said.

"Our state needs more college graduates," he said. "We are on about every bad list you can think of, and the only way to get off that list is education and to produce more graduates."

White said graduation rates also are increasing, paralleling retention rates.

"The two things are definitely related," he said.

Despite higher retention rates, UNM still faces challenges with enrollment, White said.

In 2006, 3,026 freshmen enrolled at UNM. This year, the incoming class numbers 2,910.

Terry Babbitt, UNM's vice president for enrollment management, said he is encouraged by higher retention rates because they help drive enrollment.

"If retention is good, enrollment is generally good," he said.

But retaining the right amount of freshmen is key, Babbitt said.

"When we start to get a lot of freshman students, they don't do as well because there are not enough classes available," he said. "We're looking for the right size freshman class to maximize retention."

UNM has programs aimed at helping freshmen succeed, which faculty members credit as a factor in increasing retention.

Freshman Academic Choices is a suite of four programs designed for first-semester freshmen.

Director Andres Armijo said the programs help ease the transition from high school to college, provide freshmen with a sense of community at UNM and teach them survival and study skills.

Armijo said the programs have contributed to increasing retention rates.

"They (freshmen) seem to be more fulfilled. They seem to find their way through quicker and in a more meaningful way," he said.

The Lottery Success Scholarship is another factor in higher retention, faculty members said.

"We've had very large freshman classes in the last four years at UNM with around 3,000 (incoming students)," White said. "That is almost double the number of freshmen we had in 1996. A lot of it is due to the lottery. More students are getting the lottery scholarship," which pays the tuition for New Mexico high school graduates.

Babbitt said winter intersession classes also have contributed to increased freshman retention rates.

Intersession classes, offered during the winter break between the fall and spring semesters, give students a chance to take a three-hour class they might need to graduate or retain their scholarships.

"We started that a few years back, we solidified it and got the right mix of classes," Babbitt said.

Twenty intersession classes were offered this year, drawing 450 students, he said.

Programs like that are necessary because the freshman year is the most difficult, White said.

"Everywhere in the United States it is a shock for high school students to go to a research university," he said. "Generally speaking, they are not prepared - academically, psychologically and, in some cases, financially. I might even add socially."

Dan Young, director for the Research Service Learning Program at UNM, said high retention rates show the state's largest university is making strides.

"It's a vote of confidence when they decide to come back. It's like you're doing something right."

Babbitt said although the higher rates are good news, UNM still has work ahead to reach its retention goal of 80 percent.

"If students can come back (after) that first year, they have a higher chance of graduating. We need to go to the next step and to continue to find ways to help our students succeed," he said. "We need a continuous plan to climb upward."