Perception of whether higher education is worth the price U.S. 2022, by type
According to a survey conducted in 2022, 28 percent of adults said that vocational training or other professional certification programs were definitely worth the price, more than other higher education institutions. Undergraduate education at private universities, for-profit, was perceived by adults as the least likely to be worth the price out of the other types.
The student debt crisis
In the United States, the amount of outstanding student loan debt has skyrocketed in the last few years, ultimately outpacing all other forms of household debt. As of the first quarter of 2024, Americans owed over 1.75 trillion U.S. dollars in student loans, likely influenced by increasing college tuition prices at a time of rising living costs and little wage growth. By the 2020/21 academic year, the average cost of attending a four-year postsecondary institution in the U.S. reached over 31,000 U.S. dollars, a price which may triple for Americans attending private and non-profit schools. In that same year, the average student debt for a bachelor's degree in totaled almost 35,000 U.S. dollars, depicting an increase in the amount of Americans taking on larger debts to attend higher education - an agreement which ultimately leads to an even greater outstanding balance from accrued interest. Despite a three-and-a-half-year pause on monthly student loan payments during the COVID-19 pandemic which aimed to alleviate the economic burden faced by over 45 million borrowers, most Americans still struggle to afford these payments.
Cutting out college costs
As the cost of college - and the resulting student debt - remains on the rise in the U.S., more and more university graduates have been found to be struggling financially, often having difficulty affording bills and other living expenses. Such financial hardships have also caused significant disruption to the lives of younger Americans, with a 2022 survey showing that around a quarter of Gen Z were unable to save for retirement or emergencies and had to delay homeownership and having children due to their student debt. Consequently, debates have arisen over whether the benefits of higher education still exceed the costs in the U.S., with many beginning to doubt that getting a college degree is worth the financial risk. While tuition costs remain at an all-time high, it is probable that financing a college degree may be detrimental for those Americans who have fewer resources and are unable to fund higher education without going into a significant amount of debt.
