Is College Worth It in 2025? Understanding the True Value of Higher Education

September 29, 2025

For generations, higher education was considered the natural next step after high school—a trusted pathway to career opportunities and a brighter future.

Today, that conversation is evolving. Rising tuition, changing demographics, and a job market transformed by technology are prompting students and families to think more carefully about their options. Rather than diminishing higher education, these shifts open the door to reimagining its value: How do institutions help students gain the skills and experiences they need to thrive in uncertain times? How do they prepare graduates not only for their first job, but for a lifetime of growth and reinvention?

Why are people questioning the value of higher education?

With education costs rising, the debate around the value of higher education is largely focused on its cost. As of summer 2024, more than 43 million Americans held federal student loans, totalling a balance of more than $1.7 trillion. 

Around the same time, a 2024 Pew Research Center study found that only 22% of those surveyed believe college is worth the price if it requires debt, while 29% said the cost isn’t worth it at all. 

This skepticism comes at a time when:

• Tuition continues to climb.
• Living costs stretch budgets further.
• Colleges are facing an “enrollment cliff,” with fewer high school graduates entering the pipeline.
  

All this is happening while rapid advances in AI are changing how students apply to college, how they learn once enrolled, and what employers expect after graduation. 

How is AI changing the college ROI conversation?

AI is reshaping both admissions and the workforce. On the admissions side, applicants are increasingly using AI tools to draft personal essays and statements, raising questions about whether those materials reflect their own voice. Some institutions are also experimenting with AI in their evaluation processes. These shifts make it even more important to use assessment tools that capture qualities AI cannot replicate, such as communication, resilience, and judgment.

In the job market, AI is automating repetitive tasks and even some entry-level knowledge work. According to Forbes, this has increased demand for skills including adaptability, problem-solving, and ethical reasoning.

Employers consistently highlight soft skills as key to long-term success, emphasizing that abilities such as communication, teamwork, and empathy are among the most valuable in today’s workforce.

Higher education helps students build these skills by:

• Working in teams on projects and research.
• Practicing decision-making in complex scenarios.
• Strengthening critical thinking in classrooms and labs.
• Learning to apply transferable skills in internships and community projects.
  

These skills are transferable across a wide range of industries, providing graduates with the flexibility to transition between roles and fields as needs change, making a degree valuable long after the initial job.

Do graduates see financial benefits of higher education?

Despite the increased costs of higher education, research continues to show a strong wage premium for degree holders.

The New York Federal Reserve reports that the lifetime earnings boost from a bachelor’s degree remains significant, even after adjusting for tuition and debt, stating that, “in recent years, the median college graduate with just a bachelor’s degree earned about $80,000, compared to $47,000 for the median worker with only a high school diploma. This means a typical college graduate earned a premium of over $32,000 per year, or about 68 percent.”

These numbers show higher education continues to provide measurable financial advantages. Still, salary is only part of the story. The broader value comes from how college prepares graduates with skills that remain relevant for decades.

So, is college worth it?

Communicating the value of higher education is a challenge faced by colleges and universities worldwide. Even amid rising tuition and a rapidly changing world, higher education remains a strong investment, equipping students with skills, experiences, and opportunities that have lasting value. The benefits include:

• Stronger lifetime earnings
• Greater career mobility
• Critical thinking and transferable skills that employers value
  

While salary and job prospects are essential, assessing the true ROI of college must include the adaptability, knowledge, and judgment that graduates carry throughout their lives.

Want to hear more on this topic? Explore the latest episode of The Holistic Success Show for expert insights on how higher education can prepare students to thrive in a changing world.