Why is There Less Interest in University Education
For generations, attending college was seen as the default passage into adulthood. An essential step toward independence, meaningful careers, and upward mobility. But that narrative has been shifting. Today’s young adults are increasingly questioning whether a four-year degree remains the best path to success.
What is Impacting the Decision?
The rising cost of tuition has become a major deterrent. Gen Z faces an average student debt burden of around $23,000, prompting many to ask whether college is actually worth it.
A growing share of Gen Z sees more value in hands-on careers. Roughly 50% of Gen Z respondents said they’re considering blue-collar or skilled trades (think plumbing, HVAC, and electrical work) because they offer strong job security, lower costs, and quicker returns.
Many recent graduates express regret. One poll found that 51% of Gen Z degree holders believe their education was a “waste of money,” compared to just 20% of Baby Boomers. Trust in higher education is waning: Gen Z is among the least likely to trust universities and increasingly sees them as outdated or misaligned with their goals.
Impact on Universities
Many universities are already feeling the weight of this shift. Enrollment declines are no longer a distant projection but they’re a present reality. From regional public colleges to private institutions, campuses across the country are seeing fewer applications, lower yield rates, and in some cases, year-over-year enrollment drops that threaten financial sustainability. What was once dismissed as a temporary dip is now recognized as a long-term trend: today’s generation of students simply isn’t approaching higher education with the same default assumption of “college first.”
Only about 39% of 18–24-year-olds were enrolled in college in 2022, down from 41% a decade earlier. New data shows fewer than half of high schoolers now plan to go to college immediately after graduation.
Demographic Pressures: The Enrollment “Cliff” Is Here
Beyond engagement, the pool of potential students is shrinking. The so-called “enrollment cliff”—a result of lower birthrates—means there will be ~13% fewer high school graduates by 2041 than in 2025. Colleges are already feeling the impact, with closures and increasing enrollment challenges accelerating.
What This Means for Higher Ed
The university’s monopoly on success is fundamentally shifting. Today’s young adults are adopting more agile, practical, and financial-first mindsets—choosing alternatives that deliver immediate value.
Institutions must adapt by:
Reimagining cost models and demonstrating clearer ROI.
Building pathways in vocational, technical, and experiential learning.
Earning Gen Z’s trust through transparency, relevance, and outcomes.
Strategically planning around demographic shifts to remain sustainable.
Want to Go Deeper?
If you're interested, Notion Research Group can help higher-ed leaders respond to these dynamics—whether through in-depth segmentation of student motivations, testing alternative academic models, or tracking enrollment and sentiment in real time.
