Oct 28, 2024
College has long been seen as the path to prosperity, but a growing number of younger Americans no longer see earning a degree as the ticket to success.
In fact, as tuition costs have skyrocketed and an increasing number of graduates are burdened with debt, many don't feel their education was ultimately worth the price.
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Younger generations are taking note, with some deciding to opt out entirely, pursuing alternative careers, such as skilled trades.
While this can sometimes be a smart path to take, college can still provide more income, on average, so it's important to consider the pros and cons of both options.
A pricey degree doesn’t always mean a big payoff
The cost of college has increased at a rate that far outpaces inflation, with data showing that prices have surged by 135% from 1963 to 2021 across all types of schools.
Few people can cover the costs with savings or wages, which explains why the average student borrows $32,362 to obtain a bachelor's degree at a public university, according to the Education Data Initiative.
Debts can be even higher for some, with the average balance among students with federal student loans coming in at $37,853, and the total overall average balance at $40,681, including private loans.
Being burdened with so much debt has left many with regrets. Of those with student loans, 68% say their education wasn't worth the damage their debt has done to their well-being.
An even greater number — eight in 10 — describe their debt as a huge burden, while more than four in 10 workers report that their debt negatively affects their mental health and their future plans.
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It's not surprising, in light of that data, that the younger generation has concluded that college may not be all that it's cracked up to be.
Waning interest has led to 900,000 fewer college students being enrolled in the four years since the start of the pandemic, and that has prompted many to look to learn skills elsewhere.
In fact, 49% of teens between the ages of 13 and 18 said a high-school degree, trade program, two-year degree, or enrichment program is all they need for their careers, while 56% said real-world experience trumps higher education, according to a report by Junior Achievement and Citizens.
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Should you forgo college for a career in the trades?
There are some undeniable benefits to choosing a skilled trade instead of a college degree.
You can typically get your training much more quickly, and for a fraction of the price — enabling you to start your career sooner.
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Many programs can be completed within a year, and cost between $3,600 and $16,000 total, according to the Midwest Tech Institute. This enables you to start working at a younger age and not begin your career burdened with a sizable debt balance.
An aging population has also led to a shortage of skilled tradespeople, which has created new opportunities across a variety of industries, Working Nation reports.
And, in many trades, the pay is relatively good. The median pay for a plumber, pipefitter, or steamfitter was $61,550 in 2023, according to the U.S. Bureau of Labor Statistics — well above the $48,060 median average wage across all workers.
Unfortunately, there are some downsides too.
For one thing, job options may be much more limited, as estimates from the Center on Education and the Workforce at Georgetown University suggest 72% of jobs in the U.S. will require postsecondary education or training by 2031.
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On the whole, those with a college degree also do better financially, with 87% of those with a bachelor of arts reporting that they are doing well financially. The Association of Public & Land-Grant Universities also found median lifetime earnings for bachelor's degree holders were $1.2 million higher than those without degrees.
Of course, not everyone with a degree does better, and some people in the trades can become quite wealthy, especially if they start their own businesses.
Ultimately, either a BA or skilled work can open up the door to success, but a lot depends on what your goals and aspirations are.
If you want to do certain jobs that require a degree, just be sure that you compare the starting salary to the cost of the courses you'll need to take.
If you would graduate with more debt than you'd make in a year, you may want to consider an alternative career path to avoid being left with regrets.
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Christy Bieber has 15 years of experience as a personal finance and legal writer. She has written for many publications including Forbes, Kilplinger, CNN, WSJ, Credit Karma, Insurify and more.
