Federal student loan debt is nearing $1.7 trillion, as more than 70% of graduates are not working in their degree field. Yet 72% of students across the U.S. believe their college tuition is a good investment, according to a new WalletHub survey.
The report found that only 28% of students say their tuition is not a good investment, highlighting a divide in how students perceive the value of higher education. Meanwhile, 52% said their school is not doing enough to make them financially literate.
“I think the one misstep that came out of the [Greatest] Generation post-Depression was this notion that you have to go to college to get a job,” Chip Lupo, Wallet Hub Analyst, told The Center Square in an exclusive interview.
Lupo said more emphasis should be placed on alternatives such as trade schools and military training, rather than spending tens of thousands of dollars on a four-year degree and “nothing to show for it.”
More than half of respondents, 53%, said social media pressures them to spend beyond their means, adding to financial strain.
The survey also revealed mixed views on federal student loans. One in three students said the federal government should not provide loans to individuals attending schools with high tuition costs. Sixty-seven percent of students believe the federal government should provide loans to schools with expensive tuition.
“College is expensive across the board. Where is the dividing line between what’s expensive and what isn’t? It’s all relative,” Lupo said.
The survey highlights that many students still view college as a worthwhile investment, particularly when it leads to stable employment. However, the findings suggest that confidence in the value of a degree is still strong despite the growing debt burdens.
Over 70% of college graduates have not found jobs in their field, raising concerns about the return on investment in higher education.
The U.S. Department of Education has proposed new rules aimed at holding colleges and universities accountable for programs that leave graduates with low earnings, as student loan debt continues to grow at $1.7 trillion, The Center Square previously reported.
The WalletHub survey was conducted with over 200 full-time and part-time students at a two-year or four-year school.
The California State University system declined to comment on the survey’s findings, and the University of California system did not respond to a request for comment by the time of publication.
