The Changing Value of College Education

Juan Rosales Jr., in his 30s, returned to college, tired of dead-end jobs. Now, a full-time student at Long Beach City College, he works part-time and expects to graduate in May with an associate degree in film, television, and multimedia. However, Rosales remains uncertain about the financial and professional benefits of his education. He says, “I’m just taking a leap of faith, hoping that something is going to be there at the bottom.”

For years, college promised a solid bargain: invest time and money for education, better employability, connections, and life preparation. Today, each of these aspects faces more challenges. The College Board estimates that for the 2025-26 academic year, the average student budget, including tuition, housing, and other expenses, is $30,990 at public colleges and $65,470 at private nonprofit colleges. Inflation-adjusted tuition has jumped significantly over the years.

Students weigh not only tuition costs, but also missed earnings. The question remains: does the investment pay off? For full-time workers aged 25 and older, the Bureau of Labor Statistics shows that in 2025, high school graduates earned a median of $966 per week versus $1,135 for associate degree holders and $1,578 for those with bachelor’s degrees. Bachelor’s degree holders also face lower unemployment rates at 2.8% compared to high school graduates at 4.3%.

For individual families, the real decision involves assessing specific costs, loans, and potential earnings. Economist Allison Shrivastava notes that the real comparison is between today’s graduates and today’s high school graduates. The increasing cost of living affects salary premiums, especially early on when savings are crucial.

The Federal Reserve Bank of New York reports that unemployment among recent graduates is about 5.6% in 2026, with 42% working in jobs not requiring a college degree. Employers now seek proof of practical application of knowledge. Randy Tarnowski, an economist, explains that graduates need to demonstrate skills, not simply possess diplomas.

The college experience was intended to transition adolescents into adults through exploration, independence, and exposure to diverse ideas. Shannon DeLeon, whose son attends Boise State University, values the non-economic aspects of college, stating it connects students with culture and opportunities otherwise inaccessible.

Contemporary cultural issues on campuses, such as free speech debates and mental health challenges, complicate the notion of paying for intellectual growth. A Knight Foundation-Ipsos study found a prevalent self-censorship among students, which limits educationally valuable conversations.

Colleges are under scrutiny for not only academic offerings but also their ability to foster community and manage modern concerns. Rosales acknowledges the intangible value of the college experience despite financial doubts, wondering how one places a value on such nebulous benefits.

Parents like DeLeon still support higher education but with caution towards tuition costs. Her son’s path included prior coursework and part-time work, emphasizing balance rather than blind investment. She reflects on changing perspectives, recognizing that college is now more of a deliberate calculation than an asserted necessity.

The institution of college remains valuable, offering higher earnings and irreplaceable experiences. The assumption that college is automatically the right choice, however, is disappearing. Prospective students are weighing options, costs, and benefits more critically than ever before.