Half of America’s youngest graduates now view their college degrees as a waste of money, as student debt mounts and AI threatens traditional career paths.
Quick Takes
- 51% of Gen Z graduates regret their degrees compared to 41% of millennials and just 20% of baby boomers
- The average cost of a bachelor’s degree has doubled in two decades, with total student loan debt approaching $2 trillion
- Nearly 70% of young graduates believe they could perform their current job without a college degree
- AI is causing 45% of Gen Z graduates to feel their degrees are becoming irrelevant
- Despite challenges, college graduates still earn more and face lower unemployment rates than those with only high school diplomas
Growing Disillusionment Among Young Graduates
A dramatic shift is occurring in how young Americans view the value of higher education. According to a recent poll by Indeed, more than half of Generation Z graduates now believe their college degrees were not worth the financial investment. This skepticism about the value of higher education is significantly higher among Gen Z compared to previous generations, with 51% expressing regret about their degrees versus 41% of millennials and only 20% of baby boomers. The findings reveal a generation increasingly questioning the traditional path to career success as they face unprecedented economic challenges and rapid technological changes in the workforce.
The financial burden of higher education continues to grow more oppressive. College tuition costs have doubled over the past two decades, pushing total student loan debt in America to nearly $2 trillion. For many graduates, this debt has become a career obstacle rather than a stepping stone. Indeed’s research found that 38% of respondents believe their student loans have actually hindered their professional growth more than their diplomas have helped advance their careers. Some degrees, particularly in fields like psychology or English, may take over 20 years to pay off at current salary levels.
Gen Z grads say their college degrees were a waste of time and money as AI infiltrates the workplace https://t.co/1V8Lv8U2Dy pic.twitter.com/pkHLVEqFEs
— New York Post (@nypost) April 21, 2025
The AI Revolution and Changing Job Requirements
Artificial intelligence is rapidly transforming the employment landscape, further eroding confidence in traditional credentials. The poll revealed that AI advancements are causing 30% of all graduates, and a staggering 45% of Gen Z graduates, to feel their degrees are becoming irrelevant. Many employers are already shifting focus from academic credentials to practical skills. Indeed reports that 52% of U.S. job postings on their platform don’t list any formal education requirements. This changing reality has led to 68% of young professionals expressing confidence they could perform their current roles without the degrees they spent years obtaining.
The job market’s evolution is evident in the surge of interest in AI-related training. Platforms like O’Reilly have reported a quadruple increase in enrollment for AI courses. Companies are responding by developing internal upskilling programs and training tools to prepare workers for AI integration across all levels. This shift suggests that ongoing skill development, rather than one-time degree attainment, may become the new standard for career advancement in many fields.
The Enduring Value of Higher Education
Despite growing skepticism, experts caution against dismissing the long-term value of college education. Labor market statistics continue to show that college graduates earn more and experience lower unemployment rates than those with only high school diplomas. The benefits of higher education often extend beyond immediate employment prospects to include critical thinking skills, professional networks, and adaptability that become increasingly valuable throughout a career. These factors may explain why many education experts remain confident in the fundamental value proposition of college, even as they acknowledge the need for reform.
“It’s shortsighted to focus only on immediate employment, as that makes the assumption that the value of higher education is only to get your first job,” said Christine Cruzvergara, an education professional.
The challenge for higher education institutions will be adapting to these new realities. With fewer high school graduates entering the pipeline and changing attitudes toward formal education, the number of college-educated Americans is expected to decline in coming years. This demographic shift, combined with technological disruption, will likely force universities to demonstrate more tangible returns on investment, forge stronger connections with employers, and develop more flexible, skills-focused learning models. For many institutions, survival may depend on effectively balancing traditional academic values with the practical demands of tomorrow’s job market.
