🐴 Weekly Roundup: The College ROI Question

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💡 DEEP DIVE

RETHINKING COLLEGE ROI (THE MATH IS BROKEN)

Even tech jobs aren't safe anymore…

Salesforce and other tech companies have been laying off thousands of workers—many with advanced computer science or other degrees.

Meanwhile, companies like Google, Apple, IBM, and Tesla have removed requirements for those same degrees in the smaller number of positions for which they are still hiring. The message is clear: skills matter more than credentials.

This shift raises an uncomfortable question for parents contemplating the traditional college path for their child or teen: Is a four-year degree still worth the investment?

The answer isn't a simple yes/no. For some careers, college remains essential. For an increasing number of young people, however, alternative routes offer a faster way to a more rewarding job. Let’s unpack this question with clear eyes and be willing to question our old assumptions.

Gary Vee – the legendary content creator – went viral (as he often does) by distilling a complex topic into simple, direct language: "My point of view on college is based on unemotional math," he explains.

For decades, college was ROI-positive for most who went because a degree guaranteed a high-paying job. That reality has shifted.

Today, the average student loan debt stands at $38,375 per borrower, with total U.S. student debt surpassing $1.7 trillion. Meanwhile, starting salaries vary wildly depending on major. Engineering graduates from the Class of 2024 start around $76,736, while humanities majors often begin below $40,000.

Vaynerchuk acknowledges that certain professions still require degrees: "Do you need a degree for certain professions if you want to be a doctor, lawyer? I understand all that."

But, if the purpose of college is “socialization” or practical experience, he asks whether the $200,000 spent on a degree might be better invested in a three-month European vacation.

The signs are everywhere that the paradigm is shifting:

OLD PARADIGM: Get degree → Get job → Build career
NEW PARADIGM: Build skills → Demonstrate competence → Create value

Here are just a few alternative paths to consider:

Apprenticeships: Programs like Praxis, that place participants in 6-month positions with growing companies, delivering real skills, experience, and often a job—without debt.

"Boring" Business Acquisition: Investor Codie Sanchez champions “boring businesses that solve everyday problems."

"While your friends are racking up student debt,” she notes, “you could be learning to run a landscaping service, cleaning company, or local construction firm."

Coding Bootcamps: Intensive programs teaching specific technical skills with placement rates above 80% and starting salaries competitive with computer science graduates.

Entrepreneurship: Youth entrepreneur programs showcase teens building businesses that generate revenue while delivering invaluable real-world education.

The college decision deserves careful analysis based on career goals, learning styles, and financial realities—not mere tradition or peer pressure. The best education isn't necessarily the most expensive or prestigious; it's the one that provides the skills and opportunities that lead to your child's specific version of success.

For a deeper analysis of college ROI and a framework to help make this decision for your family, read our full article: "Is College Worth the Cost? A Nuanced Look at Educational ROI".

🔍 TRENDS WE’RE WATCHING

The Rise of Skills-Based Hiring → Major employers across industries are replacing degree requirements with skills assessments and portfolio reviews. IBM reports that 50% of their U.S. positions no longer require four-year degrees, focusing instead on demonstrated capabilities.

Learning While Doing → As seen with Japan's first-graders who raised a calf named Laura, project-based learning delivers deeper understanding than traditional instruction. The math, science, and economics flowed naturally from a project with real consequences.

The Power of Boredom → "Sometimes you need to let a child get bored enough to then wake up and say, 'I have nothing I have to do. What do I want to do?'" As Matt Bowman explains, that empty space is where genuine curiosity and self-directed learning begin.

Entrepreneurship as Education → The YEA! (Youth Entrepreneur Award) showcases how teens are building real businesses instead of just studying theory. As Matt Bowman explains, "There's something unique you can learn from trying to be an entrepreneur that cannot be learned any other way." The application deadline is TOMORROW (March 15th). Even if your teen's idea isn't fully formed, encourage them to submit now at yea.education and develop it during the competition. Up to $5,000 in prizes available!

🧰 TOOLKIT

The 50 Yard Challenge → This free program invites kids ages 8-17 to mow 50 lawns for free—helping elderly neighbors, disabled individuals, single parents, and veterans. Kids earn different colored shirts for every 10 lawns completed and receive lawn equipment after hitting 50. Real-world skill development with immediate community impact.

College ROI Calculator → This interactive tool helps families evaluate the return on educational investment by comparing expected first-year post-graduation salary with the cost of attendance. The calculator provides a clear index score (1-999) showing which school and major combinations offer the greatest return. You can even factor in financial aid to see how scholarships affect the equation.

The 20-Minute Method → For overwhelmed homeschool parents: 20 minutes of focused math, 20 minutes of reading, 20 minutes of writing, with 1 hour of free exploration between each. "If you're overwhelmed, your kids are gonna be feeling overwhelmed," explains Matt Bowman. "Take a break. Take a little time where you reduce whatever you're doing by 50%."

🤔 PARTING THOUGHT

TRUSTING THE DETOUR

That’s all for this week!

– Charlie (the OpenEd newsletter guy)

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