Sorry, Gen Z graduates, but a fancy college degree is no longer the golden ticket to a big salary that it once was. New data shows that even those who study at Ivy League universities are no longer guaranteed a six-figure salary.
The Department of Education's College Scorecard tracked the average earnings, average annual costs and average debt load of former Ivy League students who received federal financial aid.
The study found that of the eight Ivy League schools, only two — the University of Pennsylvania and Princeton University — were able to get graduates a job paying more than $100,000 a year 10 years after graduation.
Those who attended the University of Pennsylvania (and received a scholarship there) had the highest average salary 10 years after tossing their graduation caps in the air, at $112,761, while Brown University students had the lowest average income 10 years after graduation, at $87,811.
Despite its world-renowned reputation, Harvard University ranked second from the bottom in wages for former Ivy League students who received federal financial aid.
Average salary of former Ivy League students 10 years later
1. University of Pennsylvania: $112,761
2. Princeton University: $110,433
3. Cornell University: $98,321
4. Columbia University: $97,540
5. Yale University: $95,961
6. Dartmouth College: $95,540
7. Harvard University: $95,114
8. Brown University: $87,811
Nearly half of master's programs leave students in financial difficulty
Of course, not everyone can afford the staggering cost of attending college. In fact, the Ivy League is known for admitting students from wealthy families who are more likely to land a high-paying job no matter where they go to school.
But other research also shows that degrees are generally losing their appeal, even though they were once seen as prestigious qualifications.
Overall, 23% of bachelor's programs have a negative return on investment, while for master's programs, that rate is nearly double, at 43%, according to the Equal Opportunity Research Foundation.
“Even one of the most popular master's degrees in the United States, the MBA, often has low or negative returns,” the report warns.
This comes as college costs continue to soar, many major companies are dropping long-standing degree requirements, and recruiters around the world are far more likely to prioritize skills over higher education when searching for new hires.
Even LinkedIn has concluded that the skills most needed to get a job today can't be learned from a textbook, and that 90% of graduates could have found work without those once-prized qualifications.
If you want evidence, look no further than wind turbine service technician, currently the fastest-growing job in the United States, which can earn up to $103,000 a year and requires no college degree.
“People are starting to suspect something is fishy.”
A large-scale survey of Gen Z workers found that 40% of 16- to 26-year-olds don't believe a college degree is necessary to have a successful career.
Perhaps this explains why the youngest generations of workers are eschewing college education (and the corporate career prospects that come with it) for traditional trades such as welding, plumbing and carpentry.
Enrollment at vocational-focused community colleges grew 16% last year, the highest level since the National Student Clearinghouse began tracking the data in 2018. Meanwhile, the number of students studying construction trades is expected to grow 23% from the previous year in 2023, according to the same data.
“People are starting to realize something is wrong,” Mike Rowe, CEO of the Mike Rowe Works Foundation, said of the shift, adding that blue-collar jobs are a “straight path to a six-figure income without the burden of debt.”
Take Chase Gallagher, for example: The 23-year-old started mowing lawns as a side hustle as a teenager and now makes more than $1 million.
“I didn't see a return on investment in going to college,” Gen Z said. luck“In America, it's possible to own a trading business with just 1% of your income.”
