A college degree is often seen as vital to success. But with the lack of workplace skills graduates bring to employers, plus the skyrocketing cost of higher education and the mounting student loan debt crisis, a bachelor’s degree from a college or university just may not pay out.
Why college is coveted
Following World War II, the government paid the college tuition for any returning GI who wanted to attend. Coincidentally, the American economy was booming at the time, and jobs at all levels were plentiful. Degrees were credited with the success of those GIs who won jobs that paid well and enabled them to buy homes in the suburbs and suburban developments, some built specifically for the burgeoning population of the new graduates and their families. (I salute you, Levittown, NY!)
Money, money, money
First, let’s look at the financial aspect of today’s college tuition. The average cost of a four-year degree at a public university is now over $30,000. At a private university, it can exceed $200,000. And that doesn’t include expenses like textbooks, housing, and transportation. With those costs, it’s no surprise the average student loan debt for a bachelor’s degree recipient is now over $30,000.
But what about the so-called financial benefits of having a college degree? While it’s true, according to university research (prejudiced, perhaps?), that college graduates on average earn more than those without a degree, the gap between the two is not as significant as one might think. A study conducted by the Federal Reserve Bank of New York suggested the median earnings for someone with a bachelor’s degree is only about 25% higher than for someone with just a high school diploma. And when you factor in the cost of “earning” the degree, the return on investment is not as impressive as one might expect.
But there’s another way.
Flipping the script on college debt
For young adults looking to launch successful careers without mountains of student debt, a shift in perspective might be the key. Skilled trade professions are experiencing a surge in demand, offering lucrative salaries that rival–and sometimes exceed–the national average. Plus, they generally don’t require a four-year commitment.
The Bureau of Labor Statistics reports that the yearly average salary across all U.S. occupations is $61,900. But many skilled trades easily compete with this figure. Ultrasonographers, for example, earn an impressive $131,161 annually, while respiratory therapists and dental hygienists bring home an average of $104,437 and $99,013 respectively. Electricians and wind turbine specialists, essential figures in our modern infrastructure, boast healthy average salaries of $62,739 and $58,005.
This trend coincides with a significant shortage of skilled tradespeople in America. This translates to a wealth of opportunities – not just for employment, but for entrepreneurial individuals to establish their own businesses and cater to a growing market. So, for those seeking a fulfilling career path without the burden of student loans, the skilled trades offer a compelling alternative.
The robots are coming!
Many of the jobs that were once considered good jobs for college graduates, such as those in manufacturing or administrative positions, are now being outsourced overseas or replaced by artificial intelligence. As a result, many college graduates are finding themselves underemployed or unemployed. A study by the Economic Policy Institute found that 44% of college graduates were in jobs that didn’t require a college degree.
Among the business organizations that no longer require degrees from applicants are Accenture, Ernst and Young, Verizon, Bank of America, Penguin Random House, Google, Apple, and IBM. The list is considerably longer, but that example, covering the gamut of business sectors, will give you an idea of how profound the reversal from “college is a must” to “college is unnecessary.”
But perhaps the biggest problem with the college degree system is that it is not providing students with the skills they need to succeed in the modern workforce. A bachelor’s degree is often seen as a one-size-fits-all solution, but the reality is that many students graduate without the specific workplace skills that employers want and need. A study by the Association of American Colleges and Universities found that only 28% of employers believe that college graduates have the skills they need for the workforce.
Light at the end of the tunnel
So, what’s the solution? Instead of viewing a college degree as a necessity for success, we should focus on providing students with the specific skills and training that they need for the jobs of today and tomorrow. And those skills may not be available from professors who lecture about occupations in which they’ve never been employed. It could include vocational training, apprenticeships, or online courses focused on specific skills. And for those who do choose to pursue a traditional college degree, we should focus on providing them with hands-on, experiential learning opportunities that will give them the skills they need to succeed. Adjunct professors currently engaged part-time by universities to reduce costs, if selected properly, could increase the value of university degrees by offering that kind of experience. For those who wish to enhance their critical thinking, often taught well by university professors with Ph.D.s, universities can still make that skill available, albeit with a hefty price tag.
While a college degree may have been a worthwhile investment in the 50s, 60s, and 70s, the skyrocketing cost of higher education and the failure of colleges and universities to produce qualified graduates, make it clear that a bachelor’s degree from a college or university is no longer the surefire path to success. Instead of viewing a degree as a necessity, we should focus on providing students with the specific skills and training they need to succeed in the modern workforce.