Is a College Degree Still Essential for Success?

The merit of a college education in the United States has been debated due to escalating tuition costs, growing student debt, and shifting perspectives on its long-term benefits.

Public trust in the U.S. higher education system has significantly decreased. A Gallup poll indicates that 36 percent of Americans have confidence in higher education—compared to 57 percent in 2015—a decline attributed to escalating tuition fees and political tensions on campuses.

Student loan debt has soared to over $1.7 trillion, impacting approximately 45 million borrowers, and the cost of attending college has risen, with private college fees averaging roughly $43,000 annually.

Despite the rising costs of higher education, data indicates that having a bachelor’s degree can significantly increase earning potential. According to the U.S. Bureau of Labor Statistics, in 2023, individuals with a high school diploma had mean earnings of $46,720, while those with a bachelor’s degree earned an average of $86,970 annually.

In light of this, Newsweek has reached out to experts to gather their insights on whether a college education is truly essential for success in today’s world.

Catharine Bond Hill, President Emerita, Vassar College, Managing Director, Ithaka S + R

Evidence confirms that those with a Bachelor’s degree earn about twice as much as those with just a high school degree over their lifetimes, more than justifying the cost—there are other benefits as well, such as better health, improved retirement savings, and greater civic engagement.

But, this evidence obscures two issues. What is true on average is not true for everyone, and the risk of investing in higher education has increased as the costs have risen.

America does not have a good system for protecting those who borrow but for whom investment in higher education doesn’t pay off. The second issue is even more important. Actual graduation rates across American higher education are terrible, and the return comes from attaining the degree.

Of the over 4000 colleges and universities across America, only about 350 have a graduation rate of over 70%. For those students who start at a community college and aspire to achieve a bachelor’s degree by transferring to a four-year college or university, only about 15% ultimately succeed.

There are about 37 million Americans who started college, earned some credits, but failed to attain a degree. And, many of these Americans borrowed to afford investing in higher education and are now saddled with debt and no return on that investment.

Given the returns to skilled labor in the U.S. and global economy, the solution is to fix the graduation rate problem, not to invest less in higher education. That will have to include addressing the cost of higher education, since many students drop out because they cannot afford to continue.

Robert Kelchen, Professor and Department Head, Department of Educational Leadership and Policy Studies, University of Tennessee, Knoxville

A large body of research shows that college is generally worth the price tag. But it depends quite a bit on whether a students graduate, and to a lesser extent on a student’s field of study.

Additionally, tuition has increased slower than inflation over the last decade and average student debt burdens for undergraduate degrees are declining. The biggest concerns are with debt taken out by parents and graduate students, as their borrowing is only limited by the cost of attendance.

Bridget Burns, CEO, University Innovation Alliance

The word “college” is often used as a broad term to describe a wide range of institutions, but not all of these offer equal value. In this country, we have a history of for-profit—and even some private nonprofit—institutions charging significant tuition without delivering the quality education students deserve.

These profit-driven schemes exploit people’s desire to achieve the American Dream, and in those cases, college is not worth it. Unfortunately, these highly publicized examples fuel skepticism and an anti-intellectual narrative that unfairly tarnishes the entire sector.

While higher education is not a monolith, it is also not perfect. Decades of experience have shown that institutions must innovate and adapt to ensure every student graduates with a meaningful credential, equipped with foundational skills and knowledge to support them throughout their lifetime.

Unfortunately, not all institutions have prioritized this need, relying instead on outdated models with flawed systems, inadequate supports, and unnecessary hurdles that impede student success. Higher education must embrace change by leveraging proven innovations and working collaboratively rather than operating in silos. Admitting a student cannot just be a chance for them to succeed—it must be a commitment from the institution to do its part to ensure they receive the life changing value they’ve paid for.

At the public research universities I work with, we’ve made this commitment, and the results have been transformative and unprecedented in our sector. Over the past decade, we’ve increased our number of graduates by 164,000 beyond projections, including a 42% increase in graduates from low-income backgrounds and a 99% increase in graduates of color. These changes are the result of deliberate innovation, collaboration and data driven redesign to ensure that every student admitted has the support needed to succeed.

Data consistently shows that college graduates experience higher lifetime earnings, lower unemployment, and greater job stability than those without degrees. More importantly, higher education cultivates critical thinking, creativity, decision-making, and the ability to learn from data and history—skills that are more essential than ever in an era of AI and a rapidly changing workforce. While workforce credentials matter, the ability to adapt, solve problems, and discern truth ensures long-term success in any future.

College is worth it when it’s real education—transformative, rigorous, and rooted in a partnership between students and educators. It is also worth it when institutions collaborate and evolve to ensure they deliver on their promise to students.

David Deming, Professor of Political Economy, Harvard Kennedy School, Faculty Dean, Kirkland House, Harvard College, Research Associate at NBER

For most people, college is still worth the cost. This is true even if you think about it purely as a financial investment. Suppose that instead of paying tuition, you invested that money in the stock market. The historical rate of return on stocks is about 10%. High quality research has found that the “investment” of college tuition pays off at about 12% to 15% in terms of increased lifetime earnings. So college beats the stock market. The calculation above doesn’t account for other benefits of college-going, like increased lifetime health, better marriage and family outcomes, and so on. For all its warts, a college degree is still a very good investment for most people