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Human Resources

EPISODE

35

Is College Worth It?
Interview Highlights

A Pew Research Center survey found that only 50% of Americans believe colleges and universities are positively impacting the country signaling a decline in confidence in higher education's value.

The question of whether college is worth it has emerged as a pressing concern for both students and parents reflecting the heightened skepticism regarding the value of a traditional four-year education.

Rising tuition costs, escalating student loan debt, and uncertainties about post-graduation job prospects have fueled doubts about the return on investment in higher education. With student loan debt surpassing $1.7 trillion, universities face challenges as potential declines in enrollment threaten their financial stability.

The Shifting Perception of College Education

Recent data from a Pew survey shows a declining belief in the positive impact of colleges. The causes can be attributed to factors such as skyrocketing tuition fees, an overwhelming student loan debt crisis, and the uncertain job prospects that graduates face upon completion of their degrees.

The Student Loan Crisis

The student loan debt in the U.S. has now surpassed a staggering $1.7 trillion. This is a financial burden that affects millions of Americans, often for decades after they've graduated.

Leaders like Matt Wilkerson, an MIT grad and current CEO of Extern, are actively working towards reshaping the future for Gen Z.

The Value of Experience Over Degrees

Interestingly, while students continue to value degrees as a tool for economic mobility, many employers have begun to prioritize real world experience over academic qualifications.

The Challenge with Internships

The opportunities for gaining experience through internships are often limited by academic commitments and employer risk aversion. This is particularly problematic given that companies like IBM now value technical skills over traditional degrees.

Bridging the Gap Between Academic Learning and Real-World Skills

While college departments continue to largely focus on research output and PhD production, there is an increasing demand for practical problem-solving capabilities and attention to detail in the real world — skills which academic settings often fail to adequately nurture.

The Rise of Externships

Externships provide an innovative solution to this issue, offering hands-on experience that is accessible year-round with flexible hours. In fact, Extern.com served over 9k students last year alone, providing them with invaluable work experience.

Comparing Internships and Externships

Unlike internships, externships require less time commitment, making them more accessible to a larger number of students. The rise of remote externships has also increased engagement among Gen Z students.

Extern focuses on integrating technology with human interaction to create an ideal management experience. This approach also enables companies to reach out to underrepresented student populations.

The Value of a Degree: A Matter of Field and Experience

The value of obtaining a degree largely depends on both the field of study and the opportunity for simultaneous project building and internships. For instance, fields like software engineering require time beyond a typical 3-month bootcamp.

The Role of Universities

  • Universities should consider offering hybrid programs that combine theoretical learning with applicable real-world experience. Institutions like Maryville University are leading the way in this regard by offering credit-bearing externships.
Official Transcript

A Pew Research Center survey found that only 50% of Americans believe colleges and universities are positively impacting the country, signaling a decline in confidence in higher education's value.

The question of whether college is worth it has emerged as a pressing concern for both students and parents, reflecting heightened skepticism regarding the value of a traditional four-year education.

Rising tuition costs, escalating student loan debt, and uncertainties about post-graduation job prospects have fueled doubts about the return on investment in higher education.

With student loan debt surpassing $1.7 trillion, universities face challenges as potential declines in enrollment threaten their financial stability. They may also confront pressure to adapt curricula to meet evolving workforce demands as employers prioritize skills and experience over degrees.

Our guest today that is shaping the future of Gen Z in the workforce is MIT graduate, Y Combinator founder, and CEO at Extern, Matt Wilkerson. Matt, welcome to the show.

Matt Wilkerson: Thank you for having me.

Felicia Shakiba: Before we get into our discussion today, I want to provide full transparency to our listeners because I am grateful and very honored to serve on your advisory board, Matt. And with that in mind, I am committed to asking the tough questions that will help our audience navigate the complexities of whether or not college is worth it. So let's dive in. Matt, you're an expert at connecting universities to employers with students who are hungry to learn and gain experience.

What are you seeing from employers today? What are the trends you can share about what employers are looking for?

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