College was once seen as a path to success, but attitudes are changing as only 1 in 4 Americans now believe a bachelor’s degree is necessary for a well-paying job. This shift comes as college costs continue to rise, with some universities charging close to $100,000 per year. Employment opportunities for young men without college degrees have improved, with median annual incomes rising for those with only a high school education. However, young men without college degrees still earn less than their counterparts did 50 years ago, even though young women without degrees have seen slight increases in earnings.
The changing views on college may be due to concerns about borrowing for college education, as well as the shifting labor market opportunities for less educated individuals. Younger generations of men are earning less than they did in the 1970s, despite improvements in earnings since 2014. Young women without college degrees have seen some improvements in earnings, but those with college degrees still earn significantly more. College graduates not only earn more but also have greater wealth-building opportunities, such as jobs that offer retirement plans and stock equity.
Half of Americans believe college is worth the money only if you can avoid going into debt, with only 22% seeing the investment as worthwhile if borrowing is necessary to obtain the degree. Student debt now stands at $1.7 trillion in the U.S., making it harder for some to achieve traditional markers of middle-class life. Some Americans, particularly Republicans, believe that a college degree is less important today than it was 20 years ago. This skepticism about the value of college education could pose challenges for the higher education sector, as enrollment declines for young high school graduates and some colleges face financial difficulties.
College-educated individuals tend to have higher wealth through home equity and retirement assets, with greater access to employer-sponsored retirement plans. While some individuals in trades like plumbing or welding can earn higher incomes without a college degree, college graduates typically earn more and have significantly higher average net worth. College administrations and boards should be concerned about the perception of the value of college, especially as more Americans question the necessity of a college degree for success. The changing attitudes toward higher education may have implications for enrollment and financial sustainability for colleges in the future.
