Over the last three decades, a college degree has been viewed as the ticket to the middle class. It may be no coincidence that the cost of a four-year degree surged during that time, resulting in $1 trillion of student loan debt.
Now, things seem to be changing. A recent Gallup Poll found Americans’ confidence in the value of a college degree fell from 57% in 2015 to 36% in 2023.
Some recent graduates have discovered that a degree no longer guarantees a good job. Nathan Brunner, CEO at Salarship, an employment search engine, says the increasing number of college graduates has eroded the value of some degrees.
“For example, it is becoming harder and harder for psychology, art history, or communications graduates to find a good-paying job,” Brunner told ConsumerAffairs. “On the other hand, with the recent shortage of trade jobs, we now see some electricians and plumbers earning more than recent college graduates.”
Consider the cost
Amrit Ahluwalia, senior director of strategic insights at Modern Campus, a higher ed tech company, believes a college degree has “immense and lasting value,” as long as it’s pursued for the right reasons. But many students don’t follow that path.
“While 58% of students enroll in degree programs to achieve career outcomes, 41% are underemployed after graduation,” Ahluwalia said. “This is generally because students take on so much debt to attend their dream schools that they take whatever job they can get to begin paying down their loans, leading to underemployment cycles.”
“I think a four-year degree is not necessarily required to live a middle-class lifestyle, but I do think that lifestyle may be more accessible with one, added Audrey Boyce, vice president of operations at Empathy First Media. “Companies tend to get stuck on whether someone has a degree in the subject, versus looking at the skills they possess to do the job.”
Who’s to blame?
And that brings up another point. It’s easy to blame colleges and universities for the rising mountain of student loan debt but what role does corporate America play, demanding applicants have a degree to even be considered for a job? Should both colleges and corporations bear some responsibility?
“Yes, corporations and universities do share some responsibility for the student loan debt crisis,” said Amanda Webster, chief operating officer (COO) at Fund and Grow. “Universities have been criticized for overpromoting student loans without adequately addressing the potential financial burdens on students. Some argue that colleges should be accountable for poor graduation rates and the resulting outstanding loans. Additionally, corporations can play a role by offering more affordable education programs.”
Lauren Winans is CEO and principal HR consultant for Next Level Benefits, an HR consulting practice. Over her 20-year career, she says she has seen hiring managers accept the belief that a college degree is a sign of dedication, a belief that has not always been bourne out by experience.
‘Outdated hiring practices’
“The corporate hiring practices in place today are in many ways outdated and lead to limited opportunities for talented individuals without college degrees,” Winans told us. “And on the flip side, many individuals pursued degrees out of what they believed to be necessity, without being prepared for the financial consequences of student loans.”
Travis Lindemoen, the founder of Enjoy Mondays, a site matching job-seekers with companies, says there are good reasons to have a college degree, pointing out that college graduates tend to earn more over their careers. However, he notes that “alternative paths to the middle class are becoming increasingly viable.”
David Blake, CEO of Degreed, says his mission is “jailbreaking the degree.” His website boldly declares “Degrees are dead – skills are the new currency.”
“More organizations, including IBM, Google, Walmart, and even entire states are looking at skills-based ways of finding talent, Blake told ConsumerAffairs. “They want people who can demonstrate the fundamental knowledge, skills, and abilities needed to do the work required, and this doesn’t always come from degreed candidates.”
When it comes to today’s job market, Blake says there are multiple other ways to tell a stronger, more relevant narrative centered on the ability to do the job well. And more and more companies are figuring it out.
What does that mean for today's high-priced colleges? According to BestColleges.com, at least 48 public or nonprofit colleges have closed, merged, or announced closures or mergers since March 2020.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-01-24 12:00:14
