Challenging the Traditional College Path
Terry Schilling, president of the American Principles Project, is urging Generation Z to rethink the conventional college route and consider skilled trades or entrepreneurship. Recent graduates confront a tough job market, marked by elevated unemployment and underemployment, alongside substantial student debt burdens ranging from $80,000 to $150,000.
We need to go back to the drawing board, and if we can avoid having an entire generation stuck with $80,000 to $150,000 worth of student loans, and they can still get good jobs, we should absolutely pursue those things. I think the trades offer the best option for that.
Deteriorating Labor Market for Recent Graduates
Data from the Federal Reserve Bank of New York indicates the labor market weakened noticeably in the first quarter of 2025, hitting recent workforce entrants hardest. In June, unemployment for all college graduates stood at 2.7%, but rose to 4.8% for those aged 22 to 27. Underemployment affected 33.7% of all grads and 41.3% of recent ones, reflecting employment in roles not requiring degrees.
Rising Student Loan Pressures
The New York Fed reported a sharp increase in delinquent student loans following the end of the repayment moratorium and resumption of credit reporting. With annual tuition now at $50,000 or $60,000 depending on the institution, college increasingly appears as a questionable investment, particularly without higher-paying jobs.
With the rising cost of tuition, it's $50,000 or $60,000 depending on the school now a year, it really is looking like it might not be that great of an investment. Especially if you're not getting a higher-paying job, or you're just as unemployed as someone that didn't go to college.
Viable Alternatives: Trades and Entrepreneurship
While degrees remain essential for fields like medicine and law, Schilling argues college has become a costly and ineffective job training mechanism for many, failing to prepare students adequately. Employers now prioritize skills over degrees. Skilled trades face massive shortages, with over one million U.S. positions unfilled due to an aging workforce and societal preference for college. Examples include electrical, plumbing, and carpentry.
There are huge shortages in all the trades, whether it's electrical or plumbing or carpentry – all of these hands-on jobs – there are huge shortages in the number of people that they need to fill those jobs. And also entrepreneurship. I think the college degree obsession has led to a lack of people forming their own businesses and getting creative.
I think the cost has greatly outpaced the benefits of college. Even employers now are looking at hiring people that don't have college degrees that are better suited for the jobs.
About the American Principles Project
Founded in 2009, the American Principles Project is a national organization dedicated to campaigning and advocating for family-focused policies.
