For many years, the blueprint to success was considered to be high school, college, a job, and ultimately, stability. This route is increasingly facing doubt, however, particularly among Generation Z. With towering tuition fees, significant student loan debts, and the aftermath of the COVID-19 pandemic, the faith in college as the surefire avenue to success is wavering. Even though the majority of Gen Z still regard college as important, public confidence in higher education overall is on a downward trajectory.
This changing sentiment is having ripple effects on the general workforce, the expectations of employers, and the way that young adults are planning their future. Unsurprisingly, one of the major factors influencing Gen Z sentiment towards education is the cost of attending college. Public university tuition and fees can average over $11,000 annually while private institutions can sometimes exceed $43,000. When adding other expenses such as room, board, books, and daily living, this figure can skyrocket to nearly $60,000 per year, or around $240,000 for four years.
To cover these costs, most students resort to taking on student loans, which come with their own set of challenges. The average federal student loan debt stands close to $40,000 with decades-long repayment plans. This can have significant impacts on recent graduates, affecting how they live, save and invest for the future.
The pandemic has also significantly disrupted the educational aspirations of Gen Z. As of Fall 2021, more than half of U.S. households had a member whose college plans shifted due to factors like financial difficulties, health concerns, and increased caregiving responsibilities.
Due to rising costs, alternatives to traditional educational paths have become more appealing. Options such as apprenticeships provide immediate paid, hands-on training in sectors ranging from construction to cybersecurity, with an average starting salary of $80,000 and no debt. Faster, lower-cost digital alternatives like coding boot camps, which have an average tuition cost of $13,274, are also increasingly sought after. Software development is an in-demand field, and many boot camp graduates report starting salaries of around $70,000.
Despite alternative options and the high cost, data indicates that a college degree is still valuable. According to the U.S. Bureau of Labor Statistics, by early 2025, workers with a bachelor's degree had a median earnings of about $1,754 per week, compared to $953 for those with only a high school diploma. However, the course studied significantly influences this figure.
For instance, degrees in relatively high paying fields like nursing or engineering yield strong starting salaries, quick returns on investment, and job security. Conversely, a fine arts major might take a longer time to pay off. Besides the chosen major, the time taken to complete a degree also impacts its value, as each extra semester spent studying represents lost potential earnings.
Thus, when considering whether to pursue college or alternative options, consider your potential future earnings, the manageability of the incurred debt, and the possibility of graduating on time. The rising cost of education makes it critical to weigh the benefits against the costs.