Personal Finance Essentials
The Changing Paradigm of College Education
College Used to Be a Given
Now It’s a $135,000 Decision
For decades, going to college after high school was treated as an automatic step rather than a deliberate decision. Finish high school, enroll in a four-year program, earn a degree and get a good job. That model worked reasonably well when few people held degrees, the cost was modest and any diploma reliably set you apart from the competition. That world no longer exists, and the data makes that clear.
A Shift in Public Sentiment
Society’s view of college has shifted significantly over the past decade. In 2015, 57% of Americans called college a great deal. By 2023, that figure had dropped to 36%, according to Gallup polls. The Pew Research Center found that half the country, 49%, now says having a college degree is less important than it was 20 years ago.
The reasons run deeper than sticker shock. A Go1 survey found that 46% of workers say college did not teach them the skills their jobs require. Nearly as many business leaders (40%) agreed, saying college graduates are ill-prepared for the workforce. Among high school seniors, 59% say college is too expensive and not worth the cost, according to a 2022 Gates Foundation survey. The most common concerns expressed in surveys: fear that student loan debt will outweigh the benefits of a degree, uncertainty about career path, worry about mental health and awareness that many good jobs exist that do not require a college degree.
The proportion of high school students applying to college dropped from 71% in 2015 to 61% by 2023 – a decline of nearly 15%, according to the National Center for Education Statistics. It used to be said that going to college right after high school was axiomatic. That is no longer the case.
The Stakes Are Higher Than Ever
None of this means college has lost its value. What it means is that the cost of making a poor college decision has never been greater. The average in-state college degree now costs more than $135,000 over four years, and many students take six years or more to finish. Getting it right – the right school, the right major, the right goal and the right financial strategy – matters more today than it ever has.
