The company is dropping college requirements for new hires

NEW YORK – Skyrocketing tuition and crippling student loan debt have millions of parents and students questioning whether college is even worth it anymore as companies reconsider hiring requirements.

Major companies such as Google, Tesla, and IBM have reduced their requirements for college degrees as college enrollment continues to decline.

According to a recent study from Harvard Business Review and Emsi Burning Glass, the leading labor market data company, the company that is required for many mid-skill and even high-skill roles. More than 51 million jobs posted between 2017 and 2020 were analyzed for the study.

The move by the company reverses the so-called “degree inflation” trend that picked up steam after the Great Recession in which many employers began adding degree requirements to job descriptions that previously weren’t required — even though the actual job didn’t change. .

Instead of requiring a four-year degree, many companies are instead focusing on skill-based hiring to widen the talent pool.

Nationwide, enrollment in higher education continues to decline, but the number of prospective students application surging in many academies.

“Seventy percent of high school graduates at their peak, around 2017, went straight to college. Now, we’re around 63%, and the decline is even sharper in many countries,” said Jon Marcus, senior editor at the Hechinger Report, a nonprofit publication that covers inequality and innovation in education.

From 2010 to 2020, annual enrollment in postsecondary institutions has declined more than 14% nationally, according to the National Center for Education Statistics. In real terms, that’s 4 million fewer students compared to 10 years ago.

Marcus said the biggest declines are in the Northeast and Midwest, where birth rates are flat — meaning more students are dropping out of high school. But the biggest reason why admission numbers are down is that tuition fees are going up.

“It’s no secret that for decades the cost of college has been rising and people have struggled to pay,” Marcus said. “They’re often borrowing to pay for it, which is causing the student loan crisis we’ve been hearing about so often.”

Now, more than 40 million Americans have it college debt.

Meghan McGrody is a first-year student at Boston University and an aspiring attorney who will go through four years of undergraduate and three years of law school, bringing her family into six figures.

“I applied for financial aid. BU is 100% need-based, so that helps too,” McGrody said.

Many universities are taking notice and launching programs to lure college kids. Princeton University announced it would cover the cost of college for those whose families make less than $100,000 annually.

regarding 83% of Princeton graduating seniors are now debt free, according to the university. It is also noted that 62% of its undergraduate students have received some form of financial aid.

So, what’s the return on investment for all those paying the high price? It depends on the student’s major.

We’re seeing a big drop in the number of people enrolling in majors with the lowest ROI, so humanities, history, English,” said Michael Hicks, a professor at Ball State University.

On average, college graduates make 67% more than non-college graduates. But, of course, some professions require a degree.

“It’s a big, wide world. I mean we need someone for everything – like someone has to have a bachelor’s degree to be a doctor,” said Anna Tillisch, a college sophomore.

So, if you don’t want to be a doctor or a lawyer, why do you need a degree?

“In a knowledge economy like ours, based on things like technology, you need some people to go to college. You don’t need everyone to go to college,” Marcus said.

As college tuition continues to rise, about 45% of incoming freshmen are expected to graduate in four years, but six years has become more common.

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