10 reasons Gen Z is stepping back from college, debt, and rent
The “college at 18” script is officially getting a Gen Z rewrite, and the plot twist is a doozy. For a generation that values authenticity over dusty traditions, the four-year degree is starting to look less like a golden ticket and more like a bad subscription service, overpriced, impossible to cancel, and filled with “content” you never actually use.
The numbers back up the rebellion: data from the Walton Family Foundation and Gallup show that Gen Z teens are 11 percentage points less likely to plan to pursue a four-year college degree than Millennials were two decades ago.
Declining trust in higher education is leading many Gen Z students to question the traditional “automatic” path of college enrollment.
Skilled trades are the new status symbol
Gen Z is pursuing careers in electrical work, plumbing, and advanced manufacturing to secure their financial futures.
Instead of sitting through four years of lectures, these young professionals are choosing to earn while they learn through apprenticeships and technical programs.
Tuition prices are skyrocketing past reality
College costs are moving faster than a viral TikTok trend. According to the Education Data Initiative, the average cost of college tuition and fees in the U.S. rose 93.2% between the 2005-2006 academic year and the 2025-2026 academic year.
Even after adjusting for inflation, students pay more than their parents did. Gen Z recognizes the value of a degree but remains deeply practical about the price tag.
Community colleges offer a pragmatic pivot
Two-year schools are having a massive comeback moment across the country. Students are flocking to these campuses to grab short-term credentials that lead straight to a job.
Most of these learners prioritize developing specific workplace skills over attending general lectures. This generation prefers a fast track to a paycheck over a vague promise of opportunity. They want an education that works as hard as they do
Watching older generations drown in debt
Gen Z sees their elders struggling and says, “No thanks.” According to data from the Education Data Initiative, student loan borrowers aged 24 years and younger owed an average of $14,308 as of the third quarter of 2024. While this group makes up a smaller share of total borrowers, they hold a disproportionately high share of total student loan debt, at 15.4%.
As of early 2026, student loan debt in the United States has officially surpassed $1.83 trillion. Many young people now view a degree as a financial anchor rather than a life raft.
Also on MSN: How to stay debt-free without giving up the good life
Gap years are becoming strategic power moves
Gap years are becoming strategic power moves. Taking a year off isn’t just for backpacking or finding yourself on a beach anymore. Many college-bound students now choose a gap year to test-drive real-world careers.
This generation uses the time to build a resume through internships and specialized travel before committing to an expensive degree. This is a strategic investment rather than a detour. It turns a standard break into a professional head start.
The return on investment is flopping
The math for a four-year degree simply isn’t mathing anymore. A 2024 BestColleges survey found that only about one-third of students believe a college degree is worth the cost. Gen Z graduates consider their degree a waste of money.
This vibe shift is real. While previous generations viewed a diploma as a golden ticket, Gen Z sees it as a high-interest anchor.
The “degree equals security” myth is broken
The old blueprint for success is officially in the shredder. This generation is tired of the “study now, pay later” promise that keeps coming up empty. Since so many young adults live paycheck to paycheck, spending four years away from the full-time workforce feels like a massive gamble they can’t afford to lose.
The traditional college-to-career pipeline is no longer a given. Instead, Gen Z is building their own safety nets through side hustles and immediate earnings. They want a paycheck that shows up now, not a certificate that might help them get one later.
Rent is eating the education budget
Living indoors has become a luxury Gen Z can barely afford. According to a survey from Intuit Credit Karma, about 27% of Gen Z renters report difficulty paying their monthly rent, making them among the most affected by high housing costs.
Nearly all renters are cutting back on food and other essentials to keep a roof over their heads. High housing costs make education unaffordable.
Institutional trust is hitting an all-time low
Gen Z doesn’t buy the glossy brochure energy anymore. This generation is questioning whether the “college path” still delivers on its promises.
While many still see a degree as a valuable tool, they are increasingly skeptical of high prices that don’t match the actual campus experience.
Online learning feels like a safer bet
Flexibility is king for a generation that grew up online. According to the BestColleges 2025 Online Education Trends Report, a significant majority of online students and graduates report that their education is worth the cost, with 90% of graduates stating that their degree has had or will have a positive return on investment.
These models reduce “opportunity cost” by allowing students to keep their day jobs while studying. You can now earn a salary and a credential simultaneously without choosing between rent and a diploma.
Key Takeaway
Gen Z is choosing skills over status and affordability over tradition. They are pivoting toward trade schools, community colleges, and online certifications to avoid debt traps. High rent and stagnant wages have turned the four-year degree into a high-risk gamble that many are no longer willing to take.
Disclosure line:
This article was developed with the assistance of AI and was subsequently reviewed, revised, and approved by our editorial team.
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