The American dream said college was the way: Here's why Gen Z isn’t buying it anymore

For decades, the path to success in the United States followed a familiar script: study hard, get into a good college, graduate, and secure a stable, high-paying job. It was the promise that fuelled generations, the cornerstone of the American dream.

But for many members of Generation Z, that dream is beginning to look like an outdated myth.According to new data from the Pew Research Center, 7 in 10 Americans now believe the country’s higher education system is heading in the wrong direction, up sharply from 56% in 2020. The growing discontent cuts across party lines, with 77% of Republicans and 65% of Democrats expressing similar scepticism. Rising tuition costs, mounting student debt, and the shrinking availability of entry-level jobs have left many young Americans questioning whether a college degree is still worth it.

Who is to blame for the broken promise?

Much of the frustration is directed at universities themselves. Critics say that while institutions continue to raise tuition, they have failed to equip students with the skills needed to thrive in today’s labour market. Pew’s survey shows that 55% of Americans rate colleges poorly in preparing students for well-paying jobs, while over half say schools are falling short in providing sufficient financial assistance or developing practical problem-solving abilities.

The economic fallout is clear. A Newsweek poll found that the average Gen Zer carries more than $94,000 in personal debt—far exceeding the debt levels of millennials or Generation X at similar ages. Earlier this year, the same generation also recorded the sharpest annual drop in credit scores since 2020, slipping to an average of 676, nearly 40 points below the national average.Universities, however, argue that government interference is compounding the problem.

Earlier this month, the Trump administration sent a document titled “Compact for Academic Excellence in Higher Education” to nine elite universities—including Brown, Dartmouth, the Massachusetts Institute of Technology, the University of Virginia, and Vanderbilt. The document asked colleges to align with conservative principles or risk losing federal funding.

Among its demands: a ban on considering gender or race in admissions, free tuition for students in “hard sciences,” and a cap on international undergraduate enrolment.Some institutions have resisted, with Harvard reportedly challenging the policy in court. Others have faced political consequences; the University of Virginia’s president resigned, while Brown and Columbia negotiated settlements with the White House. Universities warn that such mandates could undermine academic freedom, but public trust in higher education continues to erode.

Tuition climbs as jobs vanish

While debate over political influence rages on, the deeper problem lies in economics.

Tuition continues to climb even as the return on investment declines. Many students graduate into an economy where artificial intelligence (AI) is rapidly automating the very entry-level jobs that once served as gateways to professional careers.According to Fortune, nearly 58% of recent college graduates in the United States were still searching for stable employment months after finishing their degrees—more than double the rate faced by millennials or Gen Xers at the same stage.

Data from venture capital firm SignalFire shows that hiring for new graduates among the 15 largest technology companies has dropped by over 50% since 2019.These pressures have sparked a quiet but growing rebellion. Instead of following the conventional white-collar route, many Gen Zers are turning to trade and vocational careers—fields once dismissed as “blue-collar.”

The rise of the Gen Z tradesperson

A 2024 Harris Poll survey for Intuit Credit Karma found that 78% of Americans have noticed an increase in young adults pursuing trade jobs.

From carpentry to electrical work, these professions offer financial independence without the burden of student loans. Some even rival corporate salaries.National Student Clearinghouse data shows vocational community college enrolments rose 16% last year, the highest since records began in 2018. Participation in construction trades programmes jumped 23%, while enrolments in HVAC and vehicle repair grew by 7%.

Analysts at Deloitte and the Manufacturing Institute estimate that 3.8 million new manufacturing jobs could open by 2033, providing a stable alternative for young workers priced out of the knowledge economy.Even corporate leaders are witnessing the shift firsthand. Fortune notes that Ford CEO Jim Farley’s son chose to work as a mechanic instead of following his father into the boardroom. Farley said his son questioned why college was necessary when he could join what he called the “essential economy.”

The Ford chief admitted it is a conversation many families are now having across America—a reflection of the cultural reset taking place.

A new definition of success

For Gen Z, the American dream is no longer a single pathway paved by university degrees and corporate ladders. Instead, it is becoming a mosaic of entrepreneurship, skilled trades, and self-directed careers that promise stability and autonomy over status.The story of higher education in America, once synonymous with opportunity, is now one of recalibration. Universities face an existential challenge: to prove their value in a world where the promise of college no longer guarantees success. Until then, the country’s youngest workers seem ready to chart their own course—one that may redefine the dream their parents once believed in.