Americans Believe College Costs Too Much but Is Worth It
Credit: Vladimir Vladimirov / Getty Images- A new survey says current and former students believe in the value of college degrees despite the cost.
- Three-quarters of college dropouts say degrees have value.
- Only 18% say tuition costs at four-year colleges are fair.
- Nine in 10 current bachelor’s degree students say their investment will be worth it.
Americans think college costs too much but believe the investment pays off.
That’s the main takeaway from a new survey released by the Lumina Foundation and Gallup.
But here’s the surprising subtext: Even college dropouts think college degrees are worth it.
Among those participating in last October’s survey were almost 5,000 adults who were previously enrolled in an associate or bachelor’s degree program but didn’t finish. Other participants included 6,000 currently enrolled students across a range of degree programs along with about 3,000 adults who never attended college at any level.
Overall, 70% said bachelor’s degrees are “extremely” or “very” valuable, while 55% said the same about associate degrees.
Perhaps unsurprisingly, currently enrolled students had the most favorable views, with 87% saying at least one degree is extremely or very valuable. Yet 76% of previously enrolled adults hold this opinion, as do 74% of those who never enrolled in college.
Colleges hoping to reenroll some of the almost 40 million dropouts and stop-outs to offset enrollment declines caused by the demographic cliff arriving this year should take solace in knowing that three-quarters of former students have a positive outlook on the value of higher education.
The flip side of this coin is that only 18% of respondents said what four-year colleges charge for tuition is fair, though 40% said this about community colleges. At the same time, 42% of current bachelor’s degree students and 61% of associate degree students said their school is doing an “excellent” or “good” job of keeping costs down.
So Americans have divergent thoughts on the notion of college cost and value. Colleges cost too much, they say, but the value they provide justifies the price.
That’s because of the payoff in the job market, real or expected. More than half of all respondents (58%) believe a college degree will “pay off” within five years, while 86% said it would within 10 years.
Among current students, 91% of bachelor’s candidates and 87% of associate candidates said their investment will be worth it.
Moreover, adults who never attended college evidently didn’t keep away due to perceived value because 63% said a bachelor’s degree would indeed be worth it. They’re even more bullish on the value of an associate degree, with 72% touting its worth.
“This research underscores a critical truth: While cost remains a significant concern, Americans overwhelmingly recognize the value of a college degree — and they expect that value to be realized quickly,” Courtney Brown, Lumina’s vice president of impact and planning, said in a statement.
“It is imperative that higher education continues to focus on affordability, transparency, and strong career alignment so that every student sees a clear return on their investment.”
At the same time, the perception of value has waned in recent years.
When asked, “Compared to 20 years ago, how important is it for people today to have a two-year or four-year college degree in order for them to have a successful career?” 38% said it’s more important today, while 27% said it’s less important.
In 2021, 44% said it’s more important, and only 20% said it’s less important.
The perception, then, that degrees are vital to one’s economic future appears to be diminishing.
Still, 91% of current bachelor’s degree students said they’re either confident or very confident their degree will land them the job they want. About the same percentage (89%) of community college students believe this as well.
Confidence varies by discipline, however, as those studying engineering and healthcare remain somewhat more optimistic than students pursuing degrees in business, technology, and natural sciences.
What to make of all this, including the inherent contradictions? It’s generally good news for an industry increasingly desperate for it.
“The results of the 2025 State of Higher Education survey suggest that while the public agrees there is room for improvement in the cost of a degree, they have not wavered in the belief that a college education is valuable,” the report concludes. “This is especially true of current students, who are highly confident that their investment will pay off.”