Most Gen Z Graduates Now Think College Was Waste of Money

Most Generation Z graduates now think college was a waste of money, according to a new poll.

Why It Matters

The sharp rise in Gen Z graduates who believe their college education was a waste of money signals a growing disillusionment with the traditional higher education model. As tuition costs continue to soar and student debt reaches historic highs, many young adults are questioning whether a degree offers the financial and professional security it once promised. This shift in perception could have long-term consequences for universities, the labor market, and broader economic mobility, especially as alternative pathways like trade schools, online certifications, and direct-to-career programs gain popularity.

What To Know

A new poll conducted by Indeed between March 27-31 among 772 U.S. adults, found 51 percent of Gen Z graduates now say their degree was a “waste of money.”

That is compared with 41 percent of millennials and just 20 percent of baby boomers. Overall, more than a third of all graduates now say their degree was a waste of money, according to the poll, which had a margin of error of +/- 4.1 percentage points.

It comes as the average cost of a bachelor’s degree in the United States has doubled in the last two decades to over $38,000. And for some subjects, like psychology, philosophy or English, it can take over 20 years in the workforce for the degree to pay for itself, according to the Education Data Initiative.

Meanwhile, the cost of tuition and fees across all universities in the United States over the past two decades have jumped between 32 percent and 45 percent over the past two decades, according to U.S. News, while total student loan debt has ballooned to nearly $2 trillion.

And the poll showed that for many graduates, student debt lingers long after their diploma is in their hands. More than half (52 percent) of respondents said they left school with education loans to pay off, with millennials particularly affected—58 percent reported carrying debt into their careers. And those with student debt (41 percent) were more likely to say their degree was a waste of money compared to those without debt (31 percent).

But the impact of student debt goes beyond financial strain. Nearly four in ten (38 percent) said their student debt hurt their professional growth more than their degree helped it.

A growing number of Gen Z graduates are questioning whether college was even necessary: 68 percent believe they could perform their jobs without a degree, compared to just 49 percent of baby boomers. A recent economic analysis shows that employers increasingly view high school and college graduates as more interchangeable, seeing less distinction between their skills than in the past. Yet despite this shift, 67 percent of respondents said they would be bothered to learn that a colleague landed a similar role without a degree.

The poll also showed that the spread of artificial intelligence into all parts of education and the workplace has made college graduates question their degree even more, with 30 percent reporting that they feel AI has made their degree irrelevant, with the number jumping to 45 percent for Gen Z.

But Kyle M.K., a career trend expert at Indeed, told Fortune: “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.”

According to the Social Science Research Council, an estimated 4.3 million young people are now deemed NEETs—meaning “not in education, employment, or training.”

What People Are Saying

Kyle M.K., a career trend expert at Indeed, told Fortune: “These realities are nudging universities and employers to shift focus from pedigree to practical skill. In fact, 52 percent of U.S. job postings on Indeed don’t list any formal education requirement.”

Christine Cruzvergara, chief education strategy officer at Handshake, told Fortune: “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. When in reality, higher education contributes to career advancement opportunities, exposure to a variety of fields, aids in self-discovery, and develops management and leadership skills.”

What Happens Next

The number of college-educated Americans is expected to shrink in the coming years because of a combination of factors, including a projected decline in the number of high school graduates and changing attitudes toward higher education, according to research by ICEF USA.