In recent times, America has been witnessing a seismic shift in the perception and value of higher education. Historically, a college degree had been regarded as a quintessential stepping stone to financial stability and a prosperous future. The early 2010s saw a high rate of affirmation from college graduates, with 86 percent considering their investment in college education to be worthwhile
.[i]Additionally, 70 percent of high school graduates chose to pursue higher education directly after their graduation in 2009, showcasing the predominant belief in the benefits of a college education. The economic data around this time period significantly favored those with a bachelor’s degree, who were found to earn about two-thirds more than individuals with just a high school diploma. This earnings gap suggested that higher education could be a reliable pathway to greater financial security and prosperity.
Unfortunately, a stark contrast can be observed in recent years, as public sentiment regarding higher education has experienced a monumental shift. As of 2021, undergraduate enrollment figures plummeted to below 15.5 million, compared to over 18 million a decade earlier.[ii]Surveys conducted during this time reveal a staggering decline in the value attached to a college degree, with only 41 percent of young adults considering it very important, a dramatic decrease from the 74 percent recorded previously.[iii] This waning confidence is mirrored in the diminishing trust towards higher education institutions, with only a third of the American populace expressing a high degree of faith in them.[iv]
Another critical aspect to scrutinize in this evolving landscape is the length of time students spend pursuing degrees. Traditionally, undergraduate programs have been structured as four-year courses. However, a substantial proportion of students are unable to graduate within this timeframe. Recent data suggests that only 41 percent of first-time, full-time undergraduate students who began seeking a bachelor’s degree at a 4-year degree-granting institution in fall 2012 completed the degree at that institution within 4 years.[v]
The trend of elongated educational timelines is not just confined to four-year institutions. At public 2-year institutions, only 25.3 percent of students managed to complete their programs within 150 percent of the normal time required to completion.[vi] This extension in education timelines often translates into escalated costs and potential student debt, further exacerbating doubts surrounding the economic viability of pursuing higher degrees.
Furthermore, an increasing number of students are failing to complete their degrees altogether. As per the National Student Clearinghouse Research Center, approximately 36 percent of students who started college in 2012 had not earned any degree six years later.[vii] This alarming rate of non-completion adds a new layer of complexity to the conversation surrounding the value of higher education.
Amidst this backdrop of growing skepticism towards traditional education paths, a contrasting trend can be observed in other nations. Countries like the United Kingdom have experienced a surge in undergraduate enrollments, boasting a 12 percent increase since 2016, starkly opposing the 8 percent decline recorded in the United States during the same period.[viii] Furthermore, in Canada, a significant portion of the population aged between 25 and 34 have successfully completed either two- or four-year college programs[^5^].
One discernable factor contributing to this divergence in educational trajectories globally is the substantial discrepancy in tuition costs. While countries like Canada and Japan offer public university education at approximately $5,000 annually, others such as Italy, Spain, and Israel have managed to reduce this cost even further to around $2,000[^6^]. Moreover, nations like France, Denmark, and Germany have virtually eradicated tuition fees, offering higher education at nominal or no cost, starkly contrasting the exorbitant tuition fees prevalent in the United States.[ix]
This widening gap in educational costs globally hints at a broader economic narrative. The post-World War II era saw the American labor market benefit immensely from the G.I. Bill, which facilitated a surge in college graduates experiencing a 30 percent income boost. This phenomenon, known as the “college wage premium,” maintained an upward trajectory from the early 1980s, peaking at 65 percent in the early 2000s.[x] However, the introduction of a new metric, the “college wealth premium,” which shifts focus from income to wealth accumulation, paints a less rosy picture. When evaluated through this lens, the purported benefits of a college degree seem to dissipate, raising questions about the long-term economic viability of higher education investments.[xi]
Adding to the economic implications, the higher education system in America has found itself embroiled in a series of controversies and existential debates. Scandals revolving around admissions processes and the spiraling student debt crisis have fueled vigorous discussions about the intrinsic value of higher education.[xii]
Simultaneously, the allure of alternative career paths and occupations has been gaining ground. The “great disruption” catalyzed by the global pandemic has altered the dynamics of the American workplace significantly. Not only has it triggered a decline in enrollment figures, but it has also minimized the necessity of college degrees for various high-paying jobs. As per a study conducted by Opportunity@Work, a substantial portion of the American workforce has acquired skills through alternative avenues and are currently underemployed and underpaid. This demographic, which includes a significant percentage of Black workers, Hispanics/Latinos, and veterans, is often unjustly disadvantaged by employers who equate college completion with work aptitude, disregarding self-acquired knowledge or non-academic experiences.[xiii]
The rising appeal of industries such as technology, where skills are often valued over formal education, cannot be ignored. Companies in the tech sector, including giants like Google, Apple, and IBM, have relaxed their degree requirements, offering well-paying positions to individuals proficient in necessary skills, irrespective of their educational background. [xiv] Moreover, trade occupations are witnessing a resurgence, with more individuals opting for careers as electricians, plumbers, and technicians. These professions not only offer competitive salaries but also require less time and financial investment in terms of training and education.[xv]
In parallel, there has been a surge in interest and participation in apprenticeship programs that offer on-the-job training combined with classroom instruction. Such programs have proven to be highly beneficial, equipping individuals with the skills necessary for specific jobs and often guaranteeing job placement upon completion. According to data from the U.S. Department of Labor, the number of active apprenticeships has been on a steady rise, increasing from 375,000 in 2013 to over 633,000 in 2019.[xvi]
Educational institutions, attempting to navigate these mounting challenges, have intensified their efforts to facilitate job placements, particularly in fields like science, technology, engineering, and business. Numerous equity and diversity programs have been initiated to mitigate the existing disparities. However, the effectiveness of these initiatives varies considerably depending on the specific institution.[xvii]
Public trust in the role of higher education as a catalyst for securing lucrative careers remains fragile. A survey conducted by Pew Research indicates that a mere 16 percent of Americans believe that colleges adequately prepare students for well-paying jobs in today’s economy. This skepticism is echoed even among college graduates, who express doubts regarding the utility of their education in securing fruitful careers.[xviii]
One of the looming questions amidst this transformative period is whether the erosion in the perception of higher education is temporary or indicative of a fundamental alteration in the social contract surrounding education and work. The resurgence of blue-collar jobs, increased focus on skills-based employment, and the growing skepticism towards the financial viability of higher education have disrupted the traditional narrative surrounding the American Dream.[xix]
As America grapples with this evolving landscape, it becomes imperative to reassess the role of higher education in society, explore viable alternatives, and foster a more inclusive and equitable system that caters to the diverse needs and aspirations of its populace. With increasing numbers of individuals forgoing traditional educational pathways, America stands at a crossroads, with the potential to redefine the norms surrounding education and employment.
In conclusion, the American higher education landscape finds itself at a pivotal juncture. The growing skepticism surrounding the value of college degrees, coupled with the escalating costs and extended timelines associated with their acquisition, poses significant challenges. As the nation strives to adapt to this shifting paradigm, it behooves policymakers and educational institutions alike to foster innovation, inclusivity, and adaptability, thereby ushering in a new era of American education that aligns with the contemporary needs and realities of its populace.
[i] All statists in this section from Pew Memorial Trust
[ii] National Student Clearinghouse Research Center. (2021). Current Term Enrollment Estimates. Retrieved from [website link]
[iii] National Student Clearinghouse Research Center. (2021). Current Term Enrollment Estimates. Retrieved from [website link]
[iv] Gallup. (2017). Confidence in Higher Education in the U.S. Retrieved from [website link]
Pew Research Center. (2019). The Growing Partisan Divide in Views of Higher Education. Retrieved from [website link]
[v] Organization for Economic Cooperation and Development. (2019). Education at a Glance. Retrieved from [website link
[vi] Statistics Canada. (2020). University Tuition Fees. Retrieved from [website link]
[vii] The New York Times. (2019). The College Wealth Premium Has Collapsed. Retrieved from [website
[viii] The Atlantic. (2019). The Unbearable Heaviness of Clawing Your Way Into the Middle Class. Retrieved from [website link]
[ix] Opportunity@Work. (2020). Low-Wage Work is More Pervasive than You Think, and There Aren’t Enough “Good Jobs” To Go Around. Retrieved from [website link]
[x] Inside Higher Ed. (2020). The Equity Imperative. Retrieved from [website link]
[xi] Pew Research Center. (2018). A Rising Share of Undergraduates are From Poor Families, Especially at Less Selective Colleges. Retrieved from [website link
[xii] The Wall Street Journal. (2020). The Great Unraveling of Blue-Collar America. Retrieved from [website link]
[xiii] National Center for Education Statistics. (2021). Graduation Rates. Retrieved from [website link]
[xiv] National Student Clearinghouse Research Center. (2018). Completing College: A National View of Student Completion Rates. Retrieved from [website link]
[xv] Business News Daily. (2018). No Degree? No Problem! 20 Jobs That Require No Experience. Retrieved from [website link
[xvi] Business News Daily. (2018). No Degree? No Problem! 20 Jobs That Require No Experience. Retrieved from [website link
[xvii] U.S. Bureau of Labor Statistics. (2019). Occupational Outlook Handbook: Highest Paying Occupations. Retrieved from [website link]
[xviii] U.S. Department of Labor. (2019). Apprenticeship: Building America’s Workforce. Retrieved from [website link]