The number of students enrolling in graduate school is steadily declining, according to a recent report by the Council of Graduate Schools. Although grad-school enrollment increased by six percent between 2010 and 2020—progress that remained unhindered by the pandemic—it began falling in 2022, dropping by a total of 4.7 percent between Fall 2021 and Fall 2022. During that period, part-time enrollment fell by 6.9 percent, and full-time enrollment dropped by 3.7 percent. This decline had nothing to do with demographic change. In 2022, bachelor’s degrees were held by 24.3 million 25-44-year-olds, a record high at the time, meaning that the number of potential grad-school applicants was also at a record high. Rather, it was the percentage of this demographic choosing to attend graduate school that had started to decrease.
Why this decline? It seems as though more and more college graduates, like numerous high schoolers regarding college, have adopted the view that graduate school simply isn’t worth it. This diminished interest can be explained by a number of factors.
More and more college graduates have adopted the view that graduate school simply isn’t worth it.The current tight labor market plays a significant role in students’ decisionmaking. Low unemployment rates paired with a high number of job openings mean two things for college grads who are deciding between graduate school and a job. First, because workers are in high demand, graduate degrees are seen as less important by employers seeking candidates to fill certain positions. Second, high demand for employees means that college graduates have the opportunity to begin their careers immediately, rather than spending years and thousands of dollars on graduate school. Together, these factors deter students from attending grad school and push them towards the job market. Julia Kent, vice president for best practices and strategic initiatives at the Council of Graduate Schools, explains, “The choice became, ‘Do I go to graduate school or do I look at some of these very good opportunities?’ Many of them chose to go with the money.”
At the same time, traditional graduate programs are being snubbed in favor of alternatives that are less costly and less time-consuming. An increasing number of college graduates are realizing that, for them, attending graduate school makes little financial sense. The Foundation for Research on Equal Opportunity has found that “nearly half of master’s degrees have a negative financial return,” while many programs “do not increase lifetime earnings enough to be worth it.” Although grad students comprise only around 20 percent of borrowers, they’re responsible for almost 50 percent of federal student borrowing. It appears that, for many students, attending graduate school entails spending thousands of dollars for an education that will hardly pay for itself in the future. Thus, instead of the traditional grad-school route, students are turning towards more affordable, time-efficient options.
Many universities, recognizing this, now offer master’s programs and MBAs online, providing students with more flexibility. Other non-university options, such as career training, bootcamps, and internships, are also gaining popularity as grad-school alternatives. Given the existence of these more efficient options, it is unsurprising that the general public’s enthusiasm for graduate school has waned significantly.
In response, universities are urgently seeking out strategies to entice more grad-school applicants. For them, falling interest has significant financial consequences. But it has positive implications for many of the individuals foregoing grad school to begin their careers. Most will achieve a much higher ROI on their time and money by immediately entering the workforce rather than attending a traditional program. A graduate degree is hardly necessary for many professions; humanities degrees in particular are usually necessary only for the rare individual pursuing a career in higher education. Thus, for the vast majority of graduates, it is better to work one’s way up from an entry-level position—earning experience, connections, and a salary at the same time—rather than attempting to “get ahead” by spending time and money on grad school.
For universities, falling interest in graduate programs has significant financial consequences.The drop in enrollment also provides financial benefits for those who do choose to attend grad school. Lower demand for graduate education means lower prices and fewer loans for the students who must attend graduate school for their careers (such as those pursuing medicine), meaning they’ll have an easier time paying for their education.
The phrase “falling graduate-school enrollment” sounds, at first, like another item on the laundry list of America’s pressing issues. In reality, however, it is a sign of positive change. As more and more college graduates realize that graduate school is not necessary for a flourishing career, they’ll turn to alternatives that save them time and money yet still allow them to gain experience and social capital. Universities, as expected, are worried about declining interest in their many graduate programs; yet, for college graduates, the financial and career benefits of lower grad-school enrollment rates are undeniable.
Sophia Damian is a student at Wake Forest University and a 2024 Martin Center intern.