Here’s Why One-Third of College Grads Say Their Degrees Weren’t Worth the Debt
Most college graduates took on between $25,000 and $49,999 in student loan debt, according to a new survey.
Key Takeaways
- A recent study from Nexford University found that a third of college graduates say their degrees weren’t worth it.
- One-third of graduates have so much debt that they have had to postpone saving for their first home and for retirement.
- The majority of college graduates took on between $25,000 and $49,999 in student loans.
About one-third of college graduates now say their degrees were not worth the financial burden, according to a study published recently by Nexford University.
The survey of over 1,000 U.S. college graduates showed that many were too stretched by student loans to build basic savings. A third of graduates have so much debt that they have had to postpone saving for their first home and retirement by about a decade on average.
About 30% of graduates across generations reported that they are not better off financially because of their degrees. The majority took on between $25,000 and $49,999 in student loans, while roughly a quarter owe more than $50,000 and are still repaying those balances many years after graduation.
Student loan obligations are not just slowing wealth-building; they are also reshaping personal timelines. About 14% of graduates have delayed moving out of their parents’ homes or starting families because of loan payments.
Instead of serving as a launchpad for adulthood, college degrees for many have become a financial constraint that limits choices about where to live, what work to take and when to form their own household.
Graduates typically entered college expecting that student loan debt would be offset by strong entry-level salaries, roughly starting at the $52,000 mark. They actually received much lower earnings after graduation, with most starting with salaries around $35,000.
Law graduates saw about a $30,000 decrease between expected and actual starting salaries, while education majors earned around $25,000 less than they anticipated, and arts and humanities graduates who hoped for $50,000 offers started closer to $30,000. Nearly half of college graduates ended up paying for additional training or specialized credentials after college to stay competitive, adding more costs to existing debt.
Only about 8% of respondents now believe a college degree matters most in today’s job market. The majority sees networking and demonstrable skills as more important. This perception aligns with hiring trends. LinkedIn data showed that job postings that did not require a degree grew by about 90% in 2023 as employers shift towards skills-first hiring.
Related: 5.7 Million People Are Earning $100,000 Or More Without College Degrees
Many employers now openly describe degrees as “irrelevant” for some roles and prioritize personality or practical capabilities over formal credentials.
According to the Education Data Initiative, Gen Z faces average annual college costs of around $38,270. The average price of college has more than doubled in the 21st century alone, per EDI.
At the same time, entry-level white-collar opportunities are becoming increasingly scarce, leading Americans to report record-low confidence in their ability to find a job this month.
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Key Takeaways
- A recent study from Nexford University found that a third of college graduates say their degrees weren’t worth it.
- One-third of graduates have so much debt that they have had to postpone saving for their first home and for retirement.
- The majority of college graduates took on between $25,000 and $49,999 in student loans.
About one-third of college graduates now say their degrees were not worth the financial burden, according to a study published recently by Nexford University.
The survey of over 1,000 U.S. college graduates showed that many were too stretched by student loans to build basic savings. A third of graduates have so much debt that they have had to postpone saving for their first home and retirement by about a decade on average.
