A growing number of Americans are rethinking the value of a college education as student loan debt continues to skyrocket. Recent studies show the average American graduates with $30,000 in student loan debt, leading many to question whether the investment is worth it.
According to a recent poll posted by The Wall Street Journal, 42% of Americans believe a college degree is worth the investment and 56% of all Americans viewed getting a college degree as a bad investment. The skepticism is strongest among people ages 18 to 34. Many are jumping straight into the job market instead of attending college because they feel they will accumulate debt without gaining useful job skills.
High student debt, which is $1.7 trillion, is one of the main reasons for the general shift in attitude. Borrowers usually take an average of 20 years to pay off their student loans.
Gen Z, in particular, is leading the trend. Gen Z is circumventing the traditional college experience by training in two- to 12-month programs that allow them to start working and earning money immediately.
Many members of this age group believe that the higher education system is flawed and are looking for ways to earn a living and advance their careers without taking on excessive debt. They believe college should be shorter and more affordable.
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A recent study shows that 56% of Gen Z teenagers believe a skills-based education is a better option than a four-year degree.
An increasing number of companies are now opting to remove the four-year degree requirement for certain jobs and instead, are offering their own training programs to attract and educate their ideal workforce. Workforce experts see this shift as a crucial step toward promoting diversity and reducing inequality in the workplace.
For example, in 2021, IBM announced it would no longer require a college degree for many of its positions. Instead, the company will focus on hiring candidates who have relevant skills and experience, regardless of their educational background. Apple Inc. has also stated that a college degree is no longer a requirement for many of its positions, and Google has expanded its workforce development programs to include nontraditional education and training paths.
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