Our society often promotes four-year college as the default option after high school, but this narrow focus has unintended consequences. Presenting bachelor's degrees as the primary path forward, without integrating career exploration and alternative options, fuels crises like rising student debt, declining mental health, and unfulfilling careers among graduates. It is time we re-evaluate this approach to genuinely empower students with the tools to find success, in college or otherwise.

The Spiraling Student Debt Crisis

Over 43.6 million Americans currently hold a staggering combined $1.73 trillion in student loan debt. And the already massive burden continues to balloon, with total debt balances increasing 232% since 2006 (Education Data Initiative, NY Fed). Prior to Covid when student loan payments were frozen, 11% of debt was in serious delinquency and notably higher in comparison to other forms of consumer debt (NY Fed).

HELOC: Home equity line of credit. Source: New York Federal Reserve.

More than half of student borrowers that took out loans between 2010-2019 owe more than their original balance (NY Times). 66% of college dropouts who took on debt would “have a hard time coming up with $400 to cover an unexpected expense” (NY Times).

College students today face immense financial strain with recent surveys revealing the breadth of this crisis. According to the Student Financial Wellness Survey, a majority of college students worry about paying for school while half struggle to focus on school work because of financial pressure. These widespread concerns reveal valid anxieties about the rising costs of college (NASFAA).

Student debt weighs heavily on many recent graduates. With entry-level salaries failing to keep pace with living costs, new graduates struggle to balance monthly expenses while paying down loans. As a consequence, major life milestones like home ownership, marriage, and starting a family often feel financially out of reach. Grads are forced to postpone dreams and delay the future they pictured while taking on debt. A staggering 70% of US adults with student loans have put off major life and financial purchases such as buying a home or saving for retirement due to their debt (Bankrate).

Disturbingly, only two-thirds of graduates believe taking on the cost of their college degree was worthwhile and will pay off in the long run (YouGov). That means over a third regret the loans they accrued just to finish their education. They do not feel their credential provided a return on investment to justify the burden of repaying their debt over years or even decades.

Current and former college students carry profound stress from the skyrocketing expense of higher education. But how did we arrive at this point? In many cases, students took on drastic loans without fully grasping the long-term consequences.

Per a recent survey, a majority of adults believe students take on college debt without adequate awareness of the potential downsides. 44% say students are not aware of the negative consequences of borrowing before they sign on the dotted line for their first loan (Bankrate).

Insufficient financial literacy in K-12 education fails to prepare students to navigate major college affordability decisions or weigh return on investment. Critical skills like budgeting, financial planning, cost-benefit analysis, and grasping the compounding impact of interest are largely ignored. Without this context, students make higher-ed choices blindly, often allured by superficial rankings or institutional prestige over more pragmatic considerations like potential earnings, debt burdens, or career prospects per major.

With such large financial decisions made from a place of incomplete information, payoffs after graduation can fall painfully short. Loan bills arrive but career placements lag. Now, many borrowers feel trapped, unable to envision how they will pay back debt on entry-level salaries in fields they discovered post-graduation were not the right fit.

More than half of Americans think the cost of higher ed has gotten out of hand, and two-thirds think the opportunity to attend college is limited due to cost (Bankrate).

These are “crisis-level” statistics. More career prep and planning is needed now or things will only get worse.

Declining Returns on Investment Raise Questions

While bachelor's degrees may still confer an "earnings premium," this advantage has diminished in recent years, further intensifying debt burdens. Economists refer to the premium as graduates with four-year degrees earning substantially higher lifetime pay compared to those with only high school diplomas. Federal Reserve data quantifies this premium—it peaked around a 79% pay advantage in the mid-2010s for degree holders, after gaining roughly 10 percentage points the preceding decade. More recently though, as college costs and debt loads climbed, the premium edge has fallen to 75% (FRBSF).

While many cite the earnings premium as the reason to attend college, it’s a misguided explanation as it doesn’t account for debt. In other words, earnings need to be adjusted for the debt acquired in order to attain a given level of income. As a result, total wealth, or net worth, should be used to explain the advantage of attending college. Per a study by the Federal Reserve, the college wealth premium, or the extra net worth of 4-year college graduates compared with high school graduates, is declining. The Fed’s research concluded that “Among families whose head is White and born in the 1980s, the college wealth premium of a terminal four-year bachelor’s degree is at a historic low; among families whose head is any other race and ethnicity born in that decade, the premium is statistically indistinguishable from zero.”

While a number of factors are driving the above, it’s becoming harder to deny that more degrees don’t translate into greater financial and career success. We need to move away from saying “you earn more money with a college degree.”

Graduates today also face more competition from those without degrees but with vocational skills and training. Fields like tech, manufacturing, construction, and healthcare offer lucrative roles accessible via apprenticeships, certifications, or associate programs.

Further, today’s underemployment rate sits at 52% for recent college graduates, meaning more than half work in jobs that do not require or even utilize their hard-earned degree. Graduates are ending up in lower-paying roles outside their field of study, struggling to repay debts they took on with unrealistic salary expectations (The Burning Glass Institute and Strada Education Foundation).

Given the staggering costs associated with higher education today, many families now weigh whether the investment justifies the return. Is burdening oneself with tens of thousands in loans worthwhile if income and career prospects remain uncertain post-graduation?

These dilemmas stem in part from the reality that we expect teenagers to cement their professional aspirations by choosing a college major. However, interests and fit evolve. By the time graduates gain real-world perspective, some realize their degree no longer aligns with their career aims. Yet the time and money spent earning that degree can rarely be recouped.

When College Stress Becomes Too Much

The intense pressure high school students face to not only attend college but select the “right” school and program is proving mentally and emotionally taxing.

Statistics quantify this crisis. Nearly half of young adults say achievement pressure is negatively impacting their mental health along with “not knowing what to do with my life" (Harvard Graduate School of Education). 16% of US teens (ages 12-17), over 4 million kids, battled at least one major depressive episode in 2022 alone (Mental Health America. 44% of college students have reported symptoms of depression - the highest in history (Inside HigherEd). And 36% reported significant stress tied directly to college costs, as 2021 graduates entered the workforce owing over $30,000 on average (NEA).

However, despite these pressures, students lack structured guidance on professional interests or aligning pathways with career goals. School counselors, though well-intentioned, are often spread thin by mental health demands, course scheduling, and burdensome college application processes.

Moreover, the high-stakes college admissions process now pushes students to demonstrate career interests before even setting foot on campus. Top schools favor passion projects, related extracurriculars, and application essays neatly tied to a future major.

But again, students are left to explore interests and possibilities solo, without introductions to careers or coaching on strategically narrowing down options. They scramble to craft a compelling narrative before internalizing what narrative they want for themselves.

Overwhelmed and without direction, many come to see the college track as an arbitrary checklist rather than intentional steps toward a calling.

Post-Grad Fulfillment Remains Elusive

Unfortunately for many, the confusion and lack of career focus persists even after college graduation. When education fails to prepare graduates for their working lives, the impact ripples into their job satisfaction and sense of purpose.

Per a recent survey of young adults by Harvard, ~60% lacked “meaning or purpose” and ~50% had a “lack of direction” in their life (Harvard Graduate School of Education). Another study across all age cohorts suggests “only 28% say their work gives them a sense of purpose" (HP). Even those who earn degrees and obtain jobs are internally unfulfilled and wondering “now what?” next in their careers.

With little to no career exploration or planning prior, graduates cannot rely on their education experience to chart a strategic professional course. Few have clarity on their core strengths and passions or how to align roles that engage those fully.

Having a clear purpose is crucial not just for individual wellbeing but also professional success. Employees who feel their work matters become top performers. But without intentional reflection and career guidance earlier on, graduates struggle to find roles where they can thrive by leveraging their unique talents. This is an underappreciated but worsening contributor to our national mental health crisis.

The resulting turnover and chronic disengagement from these misalignments create headaches for employers as well. Unhappy workers deliver lower quality work and require more intensive management and training.

In today’s tight labor market especially, companies cannot afford subpar productivity from new hires. But misguided career and college guidance sets graduates up to stumble, not stick the landing into rewarding post-grad roles.

Rethinking Our Education Approach

The data reveals unintended but serious downsides to presenting four-year college as the default next step after high school without commensurate career development. What needs to change?

College should remain a strong option, but not the sole option put forward. This narrow focus leaves many students making major financial and mental health decisions without adequate alternatives or guidance tailored to their interests and strengths.

More informed choices require help identifying professional goals and mapping intentional pathways to reach them. Career assessments, cross-industry alumni panels, and self-reflection must enter the fray earlier on. Students deserve personalized strategies, not generic platitudes about attending college.

Vocational programs, community college, apprenticeships, certifications, and other routes also warrant discussion. So many paths can develop skills and launch careers—four-year programs are just one among them.

With more holistic career conversations, students can weigh the costs and connections of college to their interests, enter aligned programs, and make informed choices for long-term success—not just diplomas.

Our youth deserve this level of clarity and confidence as they embark on their journeys. Let's come together to make it a reality.