One out of every three college graduates admits that their degrees weren’t financially worthwhile—now they can’t save for retirement as they’re swamped in debt
Most individuals pursue their degrees in the hope that it will be the key to well – paying office jobs after graduation, especially considering the countless hours and thousands of dollars (or pounds, in my situation) they’ve invested to obtain the qualification. However, past college graduates have a harsh reality check for the optimistic Gen Z: It wasn’t worth it. At least, from a financial perspective.
An astonishing 30% of graduates from all generations have acknowledged that they are not in a better financial position because of their degrees. In fact, it highlights that many are actually in a worse situation.
The majority of graduates state that they took out student loans ranging from $25,000 to $49,999, but a quarter owe more than $50,000—and they’re still making payments years after throwing their graduation caps in the air.
One – third of graduates are so deeply in debt that they have to postpone saving for their first home and, on average, even delay retirement for a decade.
Instead of their degree serving as a launchpad for a successful life and career, about 14% admit that they had to put off moving out of their parents’ house and starting a family due to hefty student debts.
Graduates thought their paychecks would make the debt worth it
The majority of graduates enter university aware that they’ll take on some level of debt. But this is usually dismissed with the promise of higher – paying, stable careers that only a degree can open the door to.
At the time, the surveyed graduates expected to land an entry – level position paying around $52,000 after graduation, but the reality was harsh: Most started with a salary of around $35,000.
Those who studied law experienced a $30,000 drop between their desired salaries and what they were actually offered after graduation. Those who studied education got jobs paying about $25,000 less than they’d envisioned. And arts and humanities students thought they’d get $50,000 roles right out of college but actually received entry – level job offers at $30,000.
For many, the disappointment didn’t stop there. Nearly half of the graduates had to spend more money after graduation on further training and other more specialized qualifications to stand out in their desired fields.
To make matters worse, only 8% said that college diplomas are the most important thing in today’s job market. Looking back, the majority believe that networking and having demonstrable skills for the job carry more weight in the current economy.
Degrees just aren’t paying off the way graduates were promised
With college costing students an average of $36,436 per year, the next generation of workers is already questioning the return on investment they’ll get from the qualification. The number of Gen Zers signing up for vocational programs and trade schools instead of
But for those already in the process of getting a degree or who have recently graduated, the bad news keeps coming. In 2023, showed that job ads that didn’t require a degree were up 90%. At that time, it was because employers were focusing on skills – first hiring. But the situation has since become even more serious.
Now, not only are employers downplaying degrees and even hiring based on over credentials, but the number of entry – level roles available for fresh graduates is significantly decreasing.
In the U.K. alone, more than were submitted for fewer than 17,000 graduate roles last year. Meanwhile, Americans report that the probability of finding a job right now has .
Thanks to AI, many early – career jobs are being automated. One of the scientists who helped develop the technology, , has even warned that the days of all office jobs are numbered.
The experts’ advice for the large number of young unemployed graduates is to abandon the subjects they studied and instead that they could have gotten right out of school without incurring debt.