By Contributor,Sarah Hernholm

Copyright forbes

Is a college degree worth it?

For decades, the path was straightforward: graduate from high school, attend college, secure a job, and enjoy financial stability. Parents saved, students borrowed, and the diploma became shorthand for employability.

But in 2025, that script is breaking down.

According to the Federal Reserve Bank of New York’s Labor Market for Recent College Graduates data, the unemployment rate among new graduates stands at 5.3%—nearly double the 2.7% rate for all degree holders as of August 2025. Fortune adds another sobering detail: young men with diplomas are now unemployed at the same levels as those without them. In fact, 9.1% of men ages 20 to 24 are currently out of work, compared to just 7.2% of women.

For a generation raised to believe higher education was a guaranteed safety net, that’s a jarring reversal.

It leads to the bigger, uncomfortable question: if the diploma no longer delivers dependable opportunities, what kind of return are students actually getting on their six-figure investment?

Employers Are Rewriting the Rules On College Degrees

A degree once served as a shorthand signal. It told employers you could finish something hard, follow rules, and fit into the system. But more companies are questioning whether that signal still matters.

Google began dropping degree requirements for a wide range of jobs in 2024, shifting focus to proof of skills and real-world projects. Apple, IBM, Netflix, and Accenture followed, with IBM branding these pathways “new collar jobs”—positions where what you can do matters more than what’s on your transcript.

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It’s not only about technical skills. Employers increasingly wonder whether campuses are cultivating independent thinkers or just cautious followers. When graduates arrive hesitant to question assumptions, collaborate across differences, or challenge authority, companies see the cultural imprint of campuses that reward conformity over curiosity.

College may still matter, but the once direct pipeline from classroom to career is now conditional, varying by major, region, and the strength of a graduate’s network.

College Costs Rise 169% While Starting Salaries Stagnate

The financial math of higher education looks very different from what it did even 20 years ago.

College costs are up 169% since 1995

Student debt has reached $1.7 trillion nationwide, with the average graduate owing $37,338

Entry-level salaries in many industries remain flat.

And families and students aren’t just paying for tuition—they’re buying into an environment. When that environment potentially discourages risk-taking, open dialogue, or resilience, the intangible ROI of college erodes. Parents are left questioning why they’re funding four years of intellectual narrowing instead of intellectual growth.

College Students Say They Self-Censor

Beyond financial ROI, students expect college to deliver intellectual growth and exposure to diverse perspectives. Instead, surveys suggest a narrowing of experience.

A Knight Foundation–Ipsos study from the Knight Free Expression Research Series found that 66% of college students self-censor during class discussions, worried about how their peers or professors might respond. At the same time, employers consistently rank critical thinking, communication, and the ability to collaborate across differences as some of the most valuable workplace skills.

Students themselves recognize the cost of holding back. Two in three say self-censorship limits the educational value of classroom conversations, and the same share admit they avoid speaking up on specific topics—especially when it comes to gender and LGBTQ+ issues, race, or religion.

Despite this, students clearly want more opportunities to engage in constructive dialogue. Most are unaware of any campus programs designed to foster such exchanges. And among those who say their schools lack these initiatives, a substantial majority say they would support creating them.

Instead of encouraging students to wrestle with opposing views, many campuses reward silence or groupthink. This doesn’t just affect classroom debate—it carries into the workplace, where young professionals may hesitate to challenge ideas or raise concerns. In high-stakes environments, that hesitation is costly.

When universities discourage or limit open debate, they undercut precisely the competencies companies say they prize. Students who are expected to sharpen their ability to lead, reason, and challenge ideas often find themselves less prepared for leadership roles that require synthesizing opposing perspectives.

College Alternatives Can Lead To Jobs

While college is struggling to justify its cost for some fields, alternative pathways are gaining traction:

Tech bootcamps like Bloom Institute of Technology (formerly Lambda School) pioneered income-share agreements. Students pay nothing up front and only contribute once they land jobs over $50,000. Placement rates hover near 86% within six months.

White-collar apprenticeships launched by Accenture, Aon, and JPMorgan Chase provide paid training in consulting, insurance, and finance, with direct pipelines to employment.

Entrepreneurship remains a viable path. From creators building businesses on digital platforms to startups launched by teens, many are bypassing traditional credentials altogether.

These options are often less expensive, faster, and more closely tied to job outcomes than a four-year degree.

Treating College Like Any Investment Decision

In 2025, the most innovative approach is to treat college as one option, not the default. Families should evaluate programs the same way they would any investment:

Cost vs. Expected Salary: Does the starting pay in your field justify the tuition and debt load?

Employment Outcomes: What percentage of graduates are working in their field within six months?

Skill-Building Opportunities: Does the school provide internships, networking, or hands-on projects?

Alternatives: Could apprenticeships, certifications, or entrepreneurial ventures offer similar outcomes at a lower cost?

Parents might also consider timing. Gap years spent working, volunteering, or launching projects often lead to more intentional education choices and a more substantial ROI.

Doing Your College Research

Start by researching actual employment outcomes for specific programs at target schools. Graduation rates don’t tell the whole story. Calculate total costs, including living expenses and opportunity costs, of four years out of the workforce.

Consider scheduling informational interviews with professionals in your target field. Ask about hiring practices, skill requirements, and whether they’d recommend their educational path to young people today. Many professionals will share honest insights about industry trends and alternative entry points.

Explore multiple pathways simultaneously. Apply to colleges while also researching apprenticeship programs, professional certifications, or gap year opportunities. Having options reduces pressure and enables better decision-making.

Finally, remember that educational decisions aren’t permanent. Many successful professionals combine multiple approaches—starting with community college, transferring to four-year schools, adding certifications, or launching businesses alongside traditional employment.

College Is No Longer The Only Path

In 2025, college remains valuable for students who choose high-ROI majors, limit debt exposure, and treat school as a launchpad rather than a holding pattern. But it’s no longer the singular path to opportunity.

Ironically, the very adaptability and intellectual courage the future demands are often harder to cultivate in today’s college climate. Students who learn to navigate real-world complexity—whether through apprenticeships, startups, or hands-on projects—may end up better prepared.

A valuable investment is developing skills, networks, and adaptability—assets that hold value regardless of whether they’re earned inside or outside college walls. Success comes from choosing intentionally based on individual goals, financial circumstances, and career objectives rather than following outdated assumptions about what career preparation requires.

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