Half of Gen Z graduates now regret getting their college degrees as tuition skyrockets, student debt approaches $2 trillion, and AI transforms the job market.
Quick Takes
- 51% of Gen Z graduates view their degrees as a “waste of money” compared to just 20% of baby boomers
- The average cost of a bachelor’s degree has doubled in two decades, with many degrees taking over 20 years to pay off
- 68% of young graduates believe they could perform their current jobs without their expensive degrees
- AI integration is causing 45% of Gen Z graduates to feel their degrees are becoming irrelevant
- Despite skepticism, college graduates still earn more and face lower unemployment than those with only high school diplomas
The College Degree Dilemma
Generation Z is experiencing a growing crisis of confidence in higher education. A recent survey from Indeed reveals that 51% of Gen Z graduates now consider their college degrees a waste of money, significantly higher than the 41% of millennials and just 20% of baby boomers who feel the same way. This generational shift in perspective comes as the cost of a bachelor’s degree has doubled over the past two decades, while the total national student loan debt approaches a staggering $2 trillion. For many young Americans, the financial burden of education has become overwhelming, with some degrees in fields like psychology or English potentially taking more than 20 years to pay off.
The financial strain is taking a measurable toll on careers and life decisions. The data shows that 38% of graduates believe their student loans have actually limited their career growth more than their diplomas have helped advance it. Meanwhile, 4.3 million Gen Z individuals currently fall into the “NEET” category – not in education, employment, or training – suggesting a broader disillusionment with traditional career pathways. This situation raises serious questions about whether the traditional college model still serves as a reliable gateway to financial success and stability.
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
AI’s Impact on Degree Value
Artificial intelligence is rapidly transforming the employment landscape, further complicating the value proposition of college degrees. Nearly 70% of young graduates now believe they could perform their current jobs without their expensive degrees, calling into question the necessity of formal higher education in today’s workplace. AI advancements are causing 30% of all graduates – and a staggering 45% of Gen Z specifically – to feel their degrees are becoming increasingly irrelevant as technology reshapes job requirements, tasks, pay structures, and hiring processes across virtually all industries and career levels.
“AI is not going to take your job. The person who uses AI well might take your job,” said Netflix’s Co-CEO Ted Sarandos.
In response to this shifting landscape, enrollment in AI-related courses has increased dramatically. Educational platforms like O’Reilly have reported quadrupling participation in artificial intelligence training programs. Meanwhile, employers and technology companies are increasingly offering upskilling programs and specialized training tools designed to prepare workers for effective AI integration. The message becoming clear to many young professionals is that mastering AI technology may now be more valuable than traditional credentials for remaining competitive in the modern workforce.
Changing Job Market Realities
The traditional degree-to-job pipeline is showing significant signs of disruption. “These realities are nudging universities and employers to shift focus from pedigree to practical skill. In fact, 52 percent of U.S. job postings on Indeed don’t list any formal education requirement,” notes Indeed workplace expert Kyle M.K. This reflects a labor market increasingly focused on technical skills and practical abilities rather than academic credentials. For many employers, demonstration of specific capabilities now outweighs the mere possession of a degree, especially as degree prevalence has increased and potentially diluted their perceived value.
Despite growing skepticism, important counterpoints remain. College graduates continue to earn more on average and experience lower unemployment rates than those with only high school diplomas. Educational experts also emphasize that degree value extends beyond immediate employment prospects. “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,” argues Christine Cruzvergara, education expert. The long-term career advancement and broader skill development that often accompanies higher education can provide benefits throughout a career, even as specific technical requirements evolve.
The Future of Education and Employment
As attitudes toward higher education continue to shift, experts predict the number of college-educated Americans may decline in coming years, influenced by both fewer high school graduates and changing perspectives on the value of college. This represents a significant inflection point for American education and employer expectations. To remain relevant, educational institutions will need to adapt by better aligning academic programs with practical workplace skills, potentially incorporating AI literacy alongside traditional curriculum, and addressing the crushing burden of student debt that many graduates face.
Employers likewise face pressure to reconsider rigid degree requirements that may screen out capable candidates. The most forward-thinking companies are already emphasizing skills-based hiring, providing internal training opportunities, and creating clearer career advancement pathways that don’t necessarily require traditional degrees. As Gen Z continues questioning the conventional wisdom about education’s value, both educational institutions and employers who adapt most effectively to these changing expectations may gain significant advantages in attracting and developing tomorrow’s talent.
