Is College Worth the Cost? A Nuanced Look at Educational ROI
Even tech jobs aren’t safe anymore. Earlier this year (2025, Salesforce laid off over 1,000 workers, and similar stories have played out across Silicon Valley, where thousands of college-educated professionals with expensive degrees found themselves suddenly unemployed.
Meanwhile, companies like Google, Apple, IBM, and Tesla have quietly removed degree requirements from many job postings. The message is clear: skills matter more than credentials.
This shift raises an uncomfortable question for parents and students contemplating the traditional college path: Is a four-year degree still worth the investment?
The answer isn’t simple. For some career paths and students, college remains essential. For others, alternative routes may offer superior returns. Let’s examine the changing landscape of educational ROI to help you make a more informed decision.
Table of Contents
The True Cost of College in 2025
College isn’t just expensive—it’s reached historically unprecedented levels. Since 1980, college tuition has increased at nearly eight times the rate of wages.
The average student loan debt now stands at $38,375 per borrower, with total U.S. student debt surpassing $1.7 trillion in 2024. [“Student Loan Debt Statistics,” Education Data Initiative, December 2024.] But tuition and loans are just the beginning of the cost equation.
But when calculating the true cost of college, you have to consider three components – more than just the immediate cost of tuition:
Direct costs: Tuition, fees, books, room and board (ranging from $5,000 to $75,000+ annually depending on the institution). For a four-year degree at a mid-tier private university, the total investment often exceeds $200,000.
Opportunity costs: Four years of reduced or lost income, work experience, and skill development
Hidden costs: Degree depreciation, career path limitations, and delayed major life milestones (home ownership, starting a family)
“The $200,000 Vacation” – A Financial Reality Check
“My point of view on college is based on unemotional math,” Vaynerchuk explains.
“We went through a 50–60 year period where going to college was ROI positive. If you went to college and got a piece of paper, you would then be able to get the return on that investment because that’s how the world worked and we were in the era of corporations having the control.”
Vaynerchuk compares the traditional college path to an expensive vacation – if your parents are willing to pay the bill, he suggests, why not take it?
He aksi acknowledges that certain professions still require degrees: “Do you need a degree for certain professions if you want to be a doctor, lawyer? I understand all that.” But for many careers, especially in business, marketing, and technology, Vaynerchuk suggests alternatives may offer better returns.
Why Major Employers Are Dropping Degree Requirements
In 2023, IBM’s CEO Arvind Krishna announced that about half of the company’s U.S. jobs no longer require a four-year degree. He’s not alone.
According to a Harvard Business Review study, companies are increasingly removing bachelor’s degree requirements for middle-skill and even high-skill roles. This talent strategy shift isn’t just about widening the applicant pool—it reflects a fundamental reassessment of what predicts job success.
Elon Musk has gone on the record saying: “There’s no need even to have a college degree…if somebody graduated from a great university, that may be an indication that they will be capable of great things, but it’s not necessarily the case.”
Companies are discovering that practical skills, work samples, and assessment results often predict job performance better than degrees. In fields like software development, cybersecurity, and digital marketing, self-taught professionals and bootcamp graduates frequently outperform their university-educated counterparts.
Free Curriculum Guide
Financial ROI: Which Fields Still Justify the Investment?
Not all degrees are created equal when it comes to return on investment. Recent data from the Federal Reserve Bank of New York reveals stark differences in earning potential across majors.
Computer engineering graduates from the Class of 2024 have an average starting salary of $74,778, while humanities majors often begin below $40,000. Engineering, computer science, nursing, and finance degrees typically demonstrate positive ROI within 10 years of graduation.
However, even these traditionally “safe” fields face disruption. A computer science degree that once guaranteed job security now competes with AI tools that can write code and perform tasks once reserved for entry-level programmers.
When evaluating potential majors, look beyond starting salaries to long-term job market projections, automation risk, and field stability. A degree with strong ROI should open doors to careers where human judgment, creativity, and specialized knowledge remain valuable despite technological advancement.
Beyond Financial Returns: The Non-Monetary Value of College
Any complete ROI analysis must consider both financial and non-financial factors. College provides several potential benefits beyond future earnings:
Personal growth and development: The college experience often fosters independence, critical thinking, and social skills that benefit students throughout life.
Network building: University connections can lead to lifelong friendships, professional opportunities, and mentorship relationships.
Structured learning environment: For students who thrive with guidance and accountability, traditional education provides beneficial structure.
Credential signaling: Despite changing trends, degrees still signal persistence and achievement to many employers.
The challenge is assigning value to these intangible benefits. For some students, they’re worth the investment. For others, alternative paths might provide similar benefits at lower cost.
Alternative Paths with Strong ROI Potential
While college remains the right choice for some students, others may find superior returns through alternative educational models:
Coding Bootcamps
Intensive, short-term programs teaching specific technical skills have gained credibility in the tech industry. Top bootcamps like Hack Reactor and App Academy boast placement rates above 80% with average starting salaries competitive with computer science graduates.
The investment: $15,000 to $20,000 and 3-6 months of intensive study
The potential return: Tech careers with $65,000 to $85,000 starting salaries without four years of opportunity cost
Apprenticeship Models
Modern apprenticeships combine on-the-job training with related instruction, allowing participants to earn while they learn. Programs like Praxis place participants in 6-month apprenticeships with growing companies where they develop practical skills while receiving compensation.
The investment: Minimal financial cost, 6-12 months of training
The potential return: Relevant work experience, professional connections, and often a full-time job offer without debt
“Boring” Business Acquisition
Investor Codie Sanchez champions an alternative path that’s gaining traction: buying existing small businesses. “You don’t need a revolutionary tech idea,” says Sanchez, author of Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses.
“The real opportunity is in boring businesses that solve everyday problems,” Sanchez explains. “While your friends are racking up student debt, you could be learning to run a landscaping service, cleaning company, or local construction firm.”
This approach leverages the massive transfer of wealth occurring as Baby Boomers retire and sell profitable local businesses. Young entrepreneurs can often secure seller financing, reducing the need for upfront capital.
Entrepreneurship and Project-Based Learning
For self-motivated young people, starting businesses or pursuing independent projects can provide invaluable education. Youth entrepreneur programs like the Youth Entrepreneur Award (YEA!) showcase teens building businesses that generate revenue while delivering real-world education.
The investment: Time, energy, and modest startup costs
The potential return: Business ownership, practical skills in marketing, sales, finance, and problem-solving
Vocational Training
Trade schools and vocational programs offer focused training for in-demand careers like electrical work, plumbing, HVAC, and healthcare support. These fields often feature strong job security, competitive wages, and resistance to outsourcing or automation.
The investment: $5,000 to $15,000 and 6 months to 2 years of training
The potential return: Stable careers with median salaries between $50,000 and $90,000, minimal debt, and earlier entry into the workforce
Making a Personalized ROI Decision
The college decision shouldn’t be made based on tradition, peer pressure, or outdated assumptions. Instead, approach it as you would any major investment—with careful analysis of costs, benefits, and alternatives.
Consider your child’s specific situation:
Career goals: Some professions (medicine, law, engineering) still require formal degrees, while others increasingly value skills over credentials
Learning style: Some students thrive in academic environments, while others learn better through hands-on work and real-world application
Personality and motivation: Self-directed learners may find greater success in alternative models than those who need structured environments
Financial situation: Family resources, scholarship opportunities, and comfort with debt should all factor into the decision
This isn’t about being “anti-college.” It’s about making an informed choice based on your specific circumstances rather than automatically following the traditional path because “that’s what successful people do.”
The Shifting Paradigm
The educational landscape has fundamentally changed:
OLD PARADIGM: Get degree → Get job → Build career
NEW PARADIGM: Build skills → Demonstrate competence → Create value
This shift doesn’t mean college is obsolete. Rather, it’s one option in an expanding menu of educational paths—each with distinct advantages for different situations.
The Bottom Line: Return on Investment Matters
This isn’t about rejecting higher education. Many careers still benefit from college degrees, and the college experience offers valuable personal growth, networking, and learning opportunities.
However, the automatic assumption that college is always worth the cost no longer holds true. The educational landscape has fundamentally changed, and decisions should adapt accordingly.
College remains a powerful tool for many careers—but it’s just one tool in an expanding toolbox of educational options. The key is matching the educational path to specific career goals, learning styles, and financial situations.
The best education isn’t necessarily the most expensive or prestigious. It’s the one that provides the skills, knowledge, and opportunities that lead to your child’s specific version of success—whatever form that may take.
Sources
“Salesforce Layoffs: Over 1,000 Workers Cut Despite AI Hiring Plans,” Bloomberg, January 2025.
“Gary Vaynerchuk on College ROI,” GaryVaynerchuk.com, September 2024.
“The Labor Market for Recent College Graduates,” Federal Reserve Bank of New York, 2024.
“Main Street Millionaire: How to Make Extraordinary Wealth Buying Ordinary Businesses,” Codie Sanchez, 2024.