Rising Financial Anxiety Reshapes Americans’ Major Life Decisions, Fact Check Finds

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.

“Students are making difficult calculations about their futures in real-time,” said Dr. Jennifer Morris, an education economist at the Urban Institute. “They’re weighing immediate financial pressures against the long-term promise of higher earnings that may come with a degree.”

The survey revealed strikingly low enthusiasm toward higher education overall. Just 13% of respondents said they feel optimistic about attending college, while a mere 7% said they are excited about it — statistics that represent a significant shift in sentiment from previous generations.

These findings come as the job market for young workers has grown increasingly uncertain. Major employers have scaled back hiring for entry-level positions across several sectors, while unemployment among recent college graduates has risen steadily in the past three years. The tech industry, once a reliable employer of new graduates, has shed more than 200,000 jobs since 2022.

Marcus Reynolds, chief economist at Moody’s Analytics, points to these trends as major factors driving skepticism. “Young people are observing their slightly older peers struggling with both student debt and finding stable employment. It’s creating legitimate questions about the traditional higher education pathway.”

However, education experts warn there may be significant long-term tradeoffs for students who choose to forgo college. According to data from the U.S. Bureau of Labor Statistics, workers with bachelor’s degrees continue to earn substantially more over their lifetimes — approximately $1.2 million more on average — and experience lower unemployment rates than workers with only high school diplomas.

“We’re concerned about a potential opportunity gap forming,” said Caroline Zhang, president of the American Council on Education. “If college becomes primarily accessible to those from higher-income backgrounds, we risk entrenching inequality for decades to come.”

The financial pressures shaping education decisions are part of a broader pattern of economic anxiety sweeping across the country. New Gallup polling found a record 55% of Americans say their financial situation is getting worse — one of the highest levels Gallup has recorded outside of major economic crises like the 2008 recession.

Despite official inflation figures showing moderation from recent peaks, Gallup’s data indicates Americans continue to feel significant financial strain. Inflation and the high cost of living remain respondents’ top financial worries, with oil and gas prices, housing costs, and healthcare expenses also ranking among their biggest concerns.

“There’s a disconnect between macroeconomic indicators and lived experience,” explains Dr. Elisa Hernandez, senior fellow at the Brookings Institution. “While headline inflation has cooled, the cumulative impact of several years of higher prices has fundamentally altered many households’ financial stability.”

These economic pressures are increasingly influencing major life decisions beyond education. Young Americans report delaying homeownership, postponing career changes, and waiting longer to have children due to financial uncertainty.

Community colleges and trade schools report seeing increased interest as students seek more affordable pathways to careers. Enrollment in two-year programs focused on healthcare, information technology, and skilled trades has risen by 12% nationally over the past year, according to the American Association of Community Colleges.

“Students are becoming more strategic consumers of education,” said Michael Thompson, education policy director at the National Governors Association. “They’re asking harder questions about return on investment and seeking clearer connections between their education and future earnings potential.”

As these trends continue, policymakers and higher education institutions face mounting pressure to address affordability concerns and demonstrate the tangible value of degrees in an increasingly uncertain economic landscape.