More than half of Generation Z college graduates believe their expensive degrees were a waste of money as student debt approaches $2 trillion and AI reshapes the job market.
Top Takeaways
- 51% of Gen Z graduates regret their college investment, compared to just 20% of baby boomers
- Student loan debt has hindered career growth for 38% of graduates more than their diploma has helped
- Nearly 70% of young graduates believe they could perform their current job without a degree
- The average cost of a bachelor’s degree has doubled in the past two decades
- AI technology is causing 45% of Gen Z to feel their degree is becoming irrelevant
The Rising Cost of Higher Education
The financial burden of obtaining a college degree has reached unprecedented levels, with the average cost of a bachelor’s degree doubling over the past two decades. This massive increase has contributed to the national student loan debt approaching $2 trillion. The consequences of this debt are felt most acutely by Generation Z graduates, who are entering the workforce with financial obligations that may take decades to fulfill. According to recent surveys, some degrees in fields like psychology or English may take over 20 years to pay off, raising serious questions about their return on investment in today’s rapidly evolving job market.
The disillusionment with higher education is particularly pronounced among younger Americans. While 51% of Gen Z graduates view their tuition expenses as wasted money, this sentiment drops to 41% among millennials and just 20% among baby boomers. This generational divide reflects both the increasing cost of education and changing workplace requirements, where formal qualifications are increasingly being outpaced by practical skills and technological proficiency.
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 fundamentally altering the employment landscape, causing 45% of Gen Z graduates to question the relevance of their degrees. As AI capabilities continue to expand, many traditional roles are being redefined, with greater emphasis placed on technological adaptability rather than formal education credentials. This shift is prompting both universities and employers to reconsider how they prepare and evaluate candidates for the modern workforce, where technical skills often take precedence over academic qualifications.
“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.
The transformation is evident in hiring practices, with 52% of U.S. job postings on Indeed no longer requiring formal education. Instead, employers are increasingly focused on candidates’ ability to demonstrate practical skills and technological proficiency. This trend is particularly challenging for recent graduates who have invested heavily in traditional degrees but may lack the specific technical capabilities that are now in high demand across various industries.
The Debt Burden
Student loan debt has become a significant obstacle to career advancement for many graduates. A troubling 38% of degree holders report that their student loans have limited their professional growth more than their diplomas have enhanced it. This financial burden has created a generation of workers who feel trapped by educational decisions made years earlier, often before they fully understood the economic implications or had accurate information about employment prospects in their chosen fields.
The statistics are particularly concerning for Generation Z, with 4.3 million young adults currently classified as “NEETs” – not in education, employment, or training. This growing demographic represents a significant portion of young Americans who are neither building careers nor acquiring additional skills, highlighting the broader economic and social consequences of educational dissatisfaction and debt burden. Despite these challenges, data still shows that college graduates generally earn more and face lower unemployment rates than those with only high school diplomas.
Adapting to a Changing Landscape
As the value proposition of traditional degrees comes under scrutiny, both educational institutions and employers are beginning to adapt. Enrollment in AI-related courses has increased significantly, with some platforms reporting quadruple the interest in such programs. Companies are also responding by offering upskilling opportunities and training tools specifically designed to help workers navigate the integration of AI into various industries and job functions. These developments suggest a future where continuous learning and technological adaptation become more important than one-time degree attainment.
“To truly unlock the potential of AI, organizations must invest in their people, offering training, hands-on experiences and opportunities to explore new tools in a supportive environment,” said Indeed Senior Talent Strategy Advisor Linsey Fagan.
Experts caution against dismissing the long-term value of higher education based solely on immediate employment outcomes. As one education professional noted, “It’s shortsighted to focus only on immediate employment,” suggesting that the true value of education may be realized over a longer career trajectory than many young graduates initially anticipate.
