Profitability Compared to Tuition 'Disappointing'... "Kid, Do You Really Have to Go to College?" Changing Perceptions in the US

Undergraduate Enrollment Down 8% Since 2016
Student Loan Debt Nears 2100 Trillion Won
NYT: "Decline in Graduates Will Cause Significant Economic Loss"

Perceptions of college are changing among young Americans. As soaring tuition fees are not matched by satisfactory employment prospects after graduation, the view that college is a "non-profitable investment" is spreading.

The US media outlet The New York Times (NYT) reported on June 5 (local time) the results of a trust survey on higher education conducted by the polling organization Gallup in June.

According to the survey, only 36% of respondents expressed trust in higher education. This figure has steadily declined since 2015 (57%) and 2018 (48%). Additionally, in the 2021 survey, nearly half (46%) said they did not want their children to attend a four-year college after high school graduation.

The tip box reads, "We have a very large amount of student loans."

In reality, the number of college graduates in the US continues to decrease. In 2010, more than 18 million undergraduates were enrolled nationwide. However, by 2021, this number had dropped to below 15.5 million, a decrease of over 2.5 million in 13 years. The percentage of high school graduates enrolling in college also fell by 8 percentage points, from 70% in 2016 to 62% recently.

The trend of avoiding college in the US contrasts with other advanced countries. Since 2000, the rate of bachelor's degree attainment among OECD member countries has increased by more than 20% on average. In the UK, the number of undergraduates has risen by 12% since 2016.

Why are young Americans avoiding college? The NYT pointed out that the rapidly increasing cost of college education has surpassed the expected income after graduation.

The outlet noted, "The cost of obtaining a college education in the US is soaring, while the earnings after graduation are declining," adding that "last year, tuition fees at four-year private and public universities in the US were double those in 1992." Currently, the total annual cost at US private universities, including tuition and living expenses, is estimated at $58,000 (approximately 77 million KRW).

As a result, students take out student loans to cover tuition fees. These loans become a major cause of financial hardship for young people until they reach their 30s after graduation. As of May this year, the total amount of student loan debt in the US was about $1.6 trillion (approximately 2,136 trillion KRW).

The NYT criticized, "With the decline in college graduates, the US economy could face an economic loss of $1.2 trillion (about 1,600 trillion KRW) by 2030," adding, "This is a burden that American society must bear together." According to the consulting firm Confferi, the US labor market is expected to face a shortage of about 6.5 million college-educated workers by 2030.