March 28, 2025

Is a College Degree Still Worth It?

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the collapse of the college degree

For decades, a college degree was the golden ticket to success. Get that diploma, and the doors of opportunity would swing wide open. But in today’s job market, that narrative is cracking. Rising tuition costs, student debt, and evolving employer demands are reshaping how we view higher education—and not necessarily for the better.

The Declining Necessity of College Degrees

The days of needing a college degree to land a good job are fading fast:

  • Many top companies are dropping degree requirements from job listings.
  • Over 50% of college graduates now work in jobs that don’t require a degree.
  • The steep cost of a degree is discouraging many from pursuing higher education altogether.

The reality? A diploma no longer guarantees a high-paying job—or even a job that requires the education it took to earn it.

The Economic Reality: Is College Still Worth the Cost?

The financial return on a college degree is shrinking:

  • The average master’s degree holder earns about $83,000 per year, just $20,000 more than the national average.
  • The cost of earning that degree? Nearly $60,000—a hefty price tag for a modest income boost.

Meanwhile, skilled tradespeople are beginning to out-earn their office-dwelling peers, without shouldering mountains of student debt.

Trade Jobs vs. White-Collar Careers: A Changing Landscape

Skilled trades are making a serious comeback, and for good reason:

  • Paid training means workers earn while they learn.
  • Tradespeople often start earning above-average incomes shortly after qualifying.
  • AI and automation are replacing white-collar jobs faster than blue-collar ones, making trades more stable and lucrative.

Plus, trade jobs often pave the way to business ownership—an opportunity that’s less common in traditional white-collar careers.

The College Degree as a Hiring Filter: Outdated and Overused

Once upon a time, having a degree was rare and prestigious—almost a guarantee of financial success. But as degrees became more common, their value diminished:

  • The rise in college graduates created an “arms race” of additional qualifications.
  • Today, many employers recognize that most skills are learned on the job.

Now, many companies are relaxing degree requirements—but old habits die hard.

The Financial Burden of Higher Education

For many, college degrees come with a heavy financial cost:

  • Student loans can take decades to repay.
  • Debt often delays other financial milestones, like buying a home or starting a business.
  • Those who skip college can get a financial head start, avoiding years of debt accumulation.

Nepotism and Unpaid Internships: A Growing Divide

As degrees lose their value, other barriers are rising:

  • Nepotism and unpaid internships are becoming more important for job seekers.
  • Demonstrating ability without a degree often requires working for free—an opportunity only available to those with financial support.
  • This shift deepens inequality, benefiting those with family connections and disadvantaging underprivileged individuals.

Are Employers Really Moving Beyond Degrees?

Despite announcements about relaxing degree requirements, the reality often tells a different story:

  • A study showed a 400% increase in roles where degree requirements were officially dropped.
  • However, actual hiring practices haven’t changed significantly—many companies still prefer candidates with degrees.

In some cases, not having a degree can even weaken an employee’s negotiating power, making it harder for them to secure raises or promotions.

Long-Term Career Impact: Who Wins Without a Degree?

The declining value of college degrees is a double-edged sword:

  • For some, this shift opens new opportunities—especially in trades, tech, and freelancing.
  • For others, especially those without connections, it creates new barriers and reduces job security.

The impact largely depends on industry, personal circumstances, and an individual’s ability to navigate a changing job market.

What Does the Future Hold?

As the job market continues to evolve, here’s what could help workers adapt:

  1. Promote Skills-Based Hiring: Companies should focus on skills and experience, not just degrees.
  2. Invest in Trade Education: Expand opportunities in trades, which offer stability and high earnings.
  3. Address Unpaid Internships: Implement policies that ensure equal access to work experience opportunities.
  4. Offer Student Loan Reform: Make education more affordable and reduce the financial burden on young professionals.

The Bottom Line: A Degree Isn’t Everything—But It Still Matters

The value of a college degree isn’t what it used to be. But for many industries, it remains a valuable tool. As the job market shifts, workers need to weigh their options carefully—because success today is about skills, experience, and adaptability, not just a piece of paper. It’s time to rethink what success looks like—because for today’s workers, it might just be found outside the traditional classroom.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

Author

  • D. Sunderland

    We created How Money Works to show what is really happening in the world of finance. As someone that has worked in both private equity and venture capital, I have a unique perspective on the financial world

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