As college debt soars and artificial intelligence transforms industries, more Gen Z graduates are questioning whether their degrees were worth the price.
At a Glance
- Nearly half of Gen Z considers their college degree a “waste of money” due to rising student loans and AI
- Over 51% of Gen Z regrets their degree, outpacing Millennials and Baby Boomers
- Student loan debt nears $2 trillion, doubling the average cost of a bachelor’s degree in two decades
- 52% of U.S. jobs now do not require formal education, highlighting a shift toward practical skills
Gen Z’s Discontent with College Education
A growing number of Gen Z graduates are rethinking the value of a traditional college education amid mounting debt and changing job market demands. According to Yahoo News, more than 51% of Gen Z degree holders regret their education investment—compared to 41% of Millennials and just 20% of Baby Boomers.
Student loan debt has ballooned to nearly $2 trillion, with the average cost of a bachelor’s degree doubling over the last two decades. Meanwhile, 38% of Gen Z say student loans have hindered their career growth more than their degrees have helped.
AI’s Role in Shaping Industry Expectations
Artificial intelligence is fundamentally altering workplace expectations, leading many young professionals to feel their traditional education is less relevant. As noted by Newsweek, 68% of Gen Z workers now believe their jobs do not require a degree at all.
Enrollment in AI-related fields has surged, with employers prioritizing practical skills over traditional diplomas. Kyle M.K. summarized this sentiment, stating, “AI is more of an amplifier than a pink slip. AI won’t invalidate a solid education, but it will reward those who keep upgrading their toolkit.”
The fast-evolving AI landscape is pushing employers to offer their own training programs, ensuring workers remain competitive as automation expands.
The Shift in Workforce Demand
An increasing number of Gen Z individuals are classified as NEETs—not in education, employment, or training—highlighting a broader disconnection from traditional workforce entry points. As New York Post reported, over 4.3 million young adults are disengaged from both school and work.
Ted Sarandos captured the new reality: “AI is not going to take your job. The person who uses AI well might take your job.” This underscores a vital shift: future workers must continually adapt to technological changes, regardless of formal education.
Despite growing skepticism, experts like Christine Cruzvergara remind students that college can still offer long-term career benefits beyond immediate job placement. “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,” she explained.
Looking Forward
As Gen Z questions traditional career paths, colleges and universities may need to reconsider their value propositions. Flexibility, affordability, and alignment with future labor market demands will likely shape the next evolution of higher education. Whether through reskilling initiatives or alternative credentials, a changing economy demands a new educational blueprint—one fit for a world where AI is no longer the future, but the present.
