Listen to the article
A growing number of young Americans are questioning whether college is still worth the cost as affordability concerns and economic uncertainty continue to rise.
New polling from higher education consulting agency EAB found that 67% of high school graduates surveyed said they are currently opting against college because of cost-of-living concerns — a sharp increase from last year. Many respondents said they are worried about taking on student loan debt while already struggling with higher costs for rent, food, and other daily expenses.
“We’re seeing unprecedented levels of financial anxiety influencing major life decisions for young people,” said Dr. Rebecca Martinez, an education policy analyst at the Urban Institute. “The traditional path through higher education is increasingly viewed through a strict cost-benefit lens.”
The EAB survey revealed strikingly low enthusiasm toward college overall. Just 13% of respondents said they feel optimistic about attending college, while only 7% said they are excited about it. This represents a significant shift in attitudes compared to pre-pandemic surveys, where excitement about college typically registered above 30%.
Many high school graduates report feeling pressure to enter the workforce immediately instead of pursuing higher education, seeking immediate income over long-term educational investment.
The findings come as the job market for young workers has become more uncertain. Hiring for entry-level positions has slowed across several sectors including technology, finance, and media. Unemployment among young college graduates has risen in recent years, reaching 4.2% for recent graduates, up from 3.6% in 2019, according to Department of Labor statistics.
Jessica Thompson, vice president at the Institute for College Access & Success, notes that these trends are creating a difficult dilemma. “Young people are caught between recognizing the long-term value of a degree while facing immediate financial pressures that make pursuing that degree increasingly challenging.”
Economists caution that while short-term financial concerns are valid, there may be significant long-term tradeoffs for students who choose not to pursue higher education.
According to data from the U.S. Bureau of Labor Statistics, workers with bachelor’s degrees continue to earn significantly more on average over their lifetimes – approximately $1.2 million more than workers with only high school diplomas. They also consistently experience lower unemployment rates, with the gap widening during economic downturns.
Community colleges and trade schools are seeing increased interest as students seek more affordable pathways to careers. Enrollment at two-year public colleges rose 2.6% last year, according to the National Student Clearinghouse Research Center, bucking the overall downward trend in higher education enrollment.
The concerns about college affordability reflect broader financial anxiety across the country. New Gallup polling found affordability remains Americans’ top financial concern in 2023, with a record 55% saying their financial situation is getting worse — one of the highest levels Gallup has recorded outside of major economic crises.
“This level of financial pessimism typically correlates with recessionary periods or major economic disruptions,” explained Michael Strain, economist at the American Enterprise Institute. “The fact that we’re seeing these numbers during a period of low unemployment suggests how deeply inflation has affected household finances.”
Gallup found inflation and the high cost of living remain the top financial worries for Americans. Oil and gas prices, housing costs, and healthcare expenses also ranked among the biggest concerns.
While inflation has cooled from its peak of 9.1% in June 2022 to 3.1% in January 2023, many Americans continue to struggle with the cumulative impact of years of higher prices. The average U.S. household has spent approximately $10,400 more since 2021 due to inflation, according to Moody’s Analytics.
Education experts and economists agree these economic pressures are increasingly influencing major life decisions beyond education — including delaying homeownership, postponing career changes, or waiting longer to have children.
“What we’re witnessing is a generation reassessing traditional markers of adulthood and success through an affordability lens,” said Thompson. “The question isn’t whether higher education has value, but whether that value can be accessed without taking on unsustainable financial burden.”
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
10 Comments
The survey findings on declining enthusiasm for college are quite remarkable. It really underscores the need for innovative solutions to address the affordability crisis in higher ed.
Absolutely. Colleges will need to reevaluate their value proposition and find ways to control costs, or risk further erosion of enrollment.
The findings highlight the difficult tradeoffs many young people are facing. Forgoing college to avoid debt could limit future earnings potential, but the upfront costs are simply too high for some.
It’s worrying to see financial anxiety having such a big influence on major life decisions like college attendance. This could have long-term implications for social mobility and the economy.
You raise a good point. Declining college enrollment due to affordability concerns could exacerbate existing inequalities and restrict opportunities for many young people.
This is an interesting and concerning trend. Rising costs are really impacting young people’s higher education plans. I wonder how this will affect future workforce and talent pipelines.
You’re right, the financial pressures are significant. It will be important to see how schools and policymakers respond to make college more accessible and affordable.
This is a complex issue with no easy solutions. Policymakers and education leaders will need to work together creatively to address the growing affordability crisis and restore confidence in the college experience.
The low enthusiasm for college is quite striking. It suggests that the traditional higher ed model may need a major rethink to stay relevant and accessible in these challenging economic times.
This trend seems to indicate a fundamental shift in how young Americans view the value of a college degree. Cost-benefit analysis is becoming the dominant factor in these important life choices.