Gen Z Graduates Struggle With $29,560 Debt as College Degree Loses Edge
Updated
Updated · The Guardian · May 24
Gen Z Graduates Struggle With $29,560 Debt as College Degree Loses Edge
3 articles · Updated · The Guardian · May 24
$29,560 in average loans left many 2024 graduates entering repayment into a weak market where even credentialed young workers struggle to cover basic living costs.
Federal Reserve Bank of New York data shows recent college graduates' unemployment rate has stayed above the overall U.S. workforce since the pandemic, narrowing the traditional advantage of a degree.
$1.8 trillion in total student debt and scarce openings are trapping some graduates in freelance, contract or service work, while others move back home; about one-fifth of Americans aged 25 to 34 still live with parents.
Consumer sentiment among Americans aged 18-34 has fallen below that of people over 55 after a sharp drop last year, reflecting broader declines in confidence, social connection and wellbeing beyond the labor market.
Is 'financial nihilism' a fleeting trend, or a permanent shift in how Gen Z views the American Dream?
As 'Boomerang Living' becomes the norm, how are families rewriting the rules of financial independence and retirement?
With AI erasing entry-level jobs, how can graduates build a career when the first rung of the ladder is missing?
Gen Z’s Debt Crisis and the Decline of College Value: Economic Shifts, AI Disruption, and the Rise of Alternative Career Paths
Overview
Gen Z faces a tough economic reality as rising education costs and accumulating student loan debt make financial stability harder to achieve. As interest on loans grows, many in this generation question whether a four-year college degree is worth the investment, especially since graduates often lack job-specific skills and still carry significant debt. This skepticism is widespread, even among groups that once strongly valued higher education. As a result, Gen Z is exploring alternative career paths and demanding more practical, affordable, and skills-focused education options, reflecting a major shift in how young people approach their futures.