More Money, Less School: Why Gen Z Is Choosing Trades Over College
The traditional post-high school path in America has been the same for decades: Go to college, earn a bachelor’s degree and then build out a career.
However, new enrollment data suggests that more and more Gen Z students are taking a different route to (hopeful) success: skipping college altogether for trade schools.
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The New Normal for Gen Z
According to a recent report from the National Student Clearinghouse Research Center, enrollment in vocational certificate programs commonly offered by trade schools has increased 10.2% in the last year. Additionally, associate degree programs also saw significant spikes, especially among repair technicians and mechanics (up 9.8%) as well as health professionals (up 7.1%).
Conversely, enrollment in master’s degree programs declined and doctoral courses remained essentially flat with almost no growth.
Why Is Gen Z Pivoting to Trade Schools?
While the enrollment study didn’t directly examine why Gen Z students are swerving away from traditional college routes, a reasonable assumption is that many in the generation born between 1997 and 2012 don’t want to accrue student debt during a time of extreme economic pressures.
For example, borrowers who complete two-year and vocational certificate programs via trade schools typically owe less than $20,000 in student debt; meanwhile, bachelor’s degree holders often graduate with roughly $29,000 to $35,000 in debt, while graduate degree holders can accrue more than $100,000 in total debt.
“The Gen Z trend of skipping college for trade school is one based in economics,” said Bryan Kuderna, certified financial planner and founder of Kuderna Financial Team. “While formal college is certainly necessary for specific fields such as engineering, architecture, healthcare, etcetera, many other majors are coming under scrutiny. With the collision of the student loan epidemic and AI replacing so many jobs, Gen Z'ers who are more entrepreneurial and not interested in the above majors are finding a more efficient path in the trades.”
With nearly 43 million Americans carrying federal student loan debt, and total student debt now reaching roughly $1.83 trillion, the prospect of entering the workforce with less debt and more competitive work training almost certainly appeals to Gen Z’s young adults.
Are Trade Schools the Right Move?
“Choosing trade school over college is an excellent strategy for individuals who want to go into the trades,” said Melanie Musson, finance expert at Clearsurance. “If you want to be an electrician, it makes a lot more sense to go to trade school than to go to college, go into debt, and still have to get an apprenticeship and training to become an electrician.”
That said, Musson cautioned that vocational training schools aren’t for everyone. “Trade school is a poor choice for individuals who want a career outside the trades,” she said. “If you want to be a teacher, a nurse, [or] a lawyer, a college education and continuing education is absolutely necessary.”
The Bottom Line
For Gen Z students, the appeal of trade school is simple: Spend less on education, enter the workforce sooner and potentially carry far less debt into adulthood. While it’s not the right path for everyone — for example, becoming a doctor still requires a traditional university education — the relative affordability of trade school makes it an appealing option for those looking to avoid high student loan debt.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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