A recent poll reveals a significant shift in perceptions among Generation Z graduates regarding the value of their college education, with 51% now considering their degree a “waste of money.” This sentiment signals growing disillusionment with the traditional higher education model, driven by soaring tuition costs and mounting student debt, which has surpassed $2 trillion in the U.S. As graduates grapple with the harsh realities of their financial decisions, many are questioning the long-term promise of job security associated with a college degree. This change in perspective could have far-reaching implications not just for universities, but also for the labor market and economic mobility, especially as alternatives like trade schools and online certifications gain traction.
The findings from a recent Indeed poll, conducted with 772 U.S. adults, highlight that the dissatisfaction is not isolated to Gen Z; overall, more than a third of all graduates reported their degrees as unworthy investments. This view contrasts sharply with baby boomers, only 20% of whom felt similarly. Factors contributing to this disappointment include the record-high average cost of a bachelor’s degree in the U.S., which has more than doubled over the past two decades to over $38,000. In specific fields like psychology and English, it can take over two decades for graduates to recoup their educational expenses, effectively questioning the return on investment of traditional degrees.
The financial burden of student debt is exacerbating feelings of disillusionment, with 52% of graduates leaving school with loans. Among millennials, this number rises to 58%, showcasing a generational struggle that many continue to bear long after graduation. The consequences of this debt extend beyond financial stress; almost 40% of respondents indicated that their student loans have had a negative impact on their professional growth. Additionally, graduates are increasingly evaluating whether a college education is necessary, with 68% expressing confidence they could perform their jobs without a degree. This contrasts significantly with the 49% of baby boomers who shared a similar sentiment, reflecting a notable generational divide in attitudes toward education and career readiness.
Further complicating the issue are advancements in artificial intelligence, which have prompted even more graduates to question the relevance of their degrees. A striking 30% of respondents feel that AI has rendered their education obsolete, a figure that climbs to 45% among Gen Z graduates. Despite these concerns, experts like Kyle M.K. emphasize that while AI may change job landscapes, it does not undermine the value of a solid education but instead rewards individuals who continuously adapt their skill sets. Accordingly, the job market is beginning to pivot; 52% of U.S. job postings on Indeed do not list formal education requirements, indicating a shift toward prioritizing practical skills over pedigree.
As the landscape of employment and higher education evolves, many are reconsidering the role of universities in their career trajectories. Christine Cruzvergara from Handshake argues that focusing solely on immediate job placement oversimplifies the broader benefits of higher education, which aids in self-discovery, career advancement, and the development of leadership skills. This nuanced approach suggests that while immediate employment is crucial, the value of education extends far beyond entry-level jobs, encompassing a broader spectrum of personal and professional growth.
Looking ahead, trends indicate that the number of college-educated Americans may decline as a result of shifting attitudes toward higher education and a decreasing pool of high school graduates. Factors contributing to this change include the growing popularity of alternative education pathways, alongside recognition of the burdens associated with traditional degrees. As Gen Z graduates and future cohorts increasingly value attainable skills and practical experience, institutions of higher learning might need to reconsider their offerings and frameworks in order to remain relevant in a rapidly transforming job market.
