Navigating higher education

People pursue higher education to gain skills and financial stability, but many feel bound by financial barriers and the rise of tuition costs. As a result, more Americans are turning to alternatives like trade schools, apprenticeships and vocational training, driving a shift in workforce trends and prompting employers to ease degree requirements for new hires.

Motivations for pursuing higher education

For most Americans, the primary motivation for seeking higher education is the promise of better employment opportunities, skill development and higher earnings. However, there’s a growing awareness that success doesn’t always require a traditional college degree, and varying paths can still lead to career fulfillment.

53% agree that people will choose trades, apprenticeships, or vocational training instead of traditional colleges in the future.

One of the non-traditional paths is joining the military where individuals can access educational benefits like scholarships and training. While military service has long been seen as a patriotic duty, it’s becoming increasingly viewed as a strategic career choice amid the rising costs of higher education. This shift in mindset reflects the economic pressures facing today’s youth, highlighting their openness to explore non-traditional routes to secure their futures.

Though recognizing that the traditional college route may be less popular in the future, Americans are still expressing aspirations and intent to pursue higher education for themselves and their families. The availability of flexible educational opportunities is becoming even more important in this diverse landscape of higher education.

The perception of affordability and value

Overall, Americans believe the value of a traditional college degree has decreased significantly over the last decade. Enrollment in vocational programs is up 16% since 2023, whereas both four-year bachelor’s degrees and two-year associate degrees have decreased over the past 10 years.

As the cost of obtaining a degree continues to soar, people are increasingly assessing their value through tangible outcomes like employment and earnings, rather than as a marker of personal or intellectual achievement. A new study by the Strada Education Foundation found graduates need to earn at least $50,000 annually, on average, in their first decade off campus to make their investment financially worthwhile. This growing recognition signals that people are believing that success can be achieved through multiple avenues, challenging long-held beliefs about higher education and career preparation.

46% of American parents would prefer their child pursue an alternative to the traditional four-year degree program, such as skills training programs, and 45% wish that there were more alternative options available.

Saving for higher education

The financial burden of higher education extends far beyond the individual student. Families—especially those with multiple generations—often contribute to covering education costs, which can significantly impact their own financial plans. However, even with family support, many students still face challenges in covering the full cost of college.

High education costs have forced many parents to make sacrifices to help their children afford it.

35% made lifestyle tradeoffs to afford higher education.

25% started saving for their child’s education before they were born.

20% have taken on additional jobs or work in order to pay for their child’s education.

18% had to choose between saving money for their child’s education and their own retirement.

Parents and grandparents who have been saving for years may assume that their children or grandchildren would attend a traditional four-year college or university. However, the growing popularity of alternative education options, coupled with increasing skepticism about the value of a college degree, may be prompting families to reassess their savings strategies.

Charting a path forward: The relationship between hiring and education

Landing a corporate job without a college degree is becoming more accessible, with 1 in 3 companies no longer requiring formal education in their salaried job postings.¹ As businesses shift their focus from degrees to relevant skills, this change stands to benefit the approximately 62% of U.S. workers without a degree, according to the U.S. Census Bureau. This impact could be significant, particularly for middle-tier roles such as construction managers, sales supervisors, web developers, cybersecurity specialists and IT help desk professionals.

The idea of hiring based on skill rather than completion of college education for certain roles has become more prevalent at a time when the economic value of a college degree is being questioned by more Americans.² As higher education opportunities continue to evolve and Americans rethink traditional routes to success, today’s learners have more choices than ever before for education and career opportunities that best suit their needs.

Key takeaways

Although the trends for pursuing higher education are evolving, there are still many employees who have taken the traditional route and are navigating the burden of student loans. Learn more in “Tackling student debt.”
Encourage employees to visit the Education Center to view articles, seminars, videos and tools to help them better plan for higher education expenses.

Source for all stats unless otherwise noted: Bank of America Proprietary Market Landscape Insights Study, September 2024. Surveys conducted among general consumers (clients and prospective clients).

¹ CNBC, “1 in 3 companies are ditching college degree requirements for salaried jobs,” March 2024.

² CNBC, “Workers without degrees are not getting as many good job offers as it seems,” February 2024.