Andrew Yang believes that AI is diminishing the career returns of expensive general universities. Families should reassess tuition, debt, school quality, and employment paths, rather than defaulting to the notion that "prestigious schools equal investment returns."

His judgment is not that "college is useless," but that the university market is polarizing: top schools still have brand value, alumni networks, and recruitment access, while low-cost public universities, community college transfer paths, and vocational education remain cost-effective. The most vulnerable are mid-tier schools that charge high fees, have low selectivity, and weak employment pathways.

Employment mismatch has weakened returns for some graduates. Research shows that up to 52% of U.S. college graduates are in jobs that typically do not require a degree when they first enter the labor market; even 10 years later, about 45% are still in this underemployment state.

However, the degree premium has not disappeared. Typical bachelor's degree holders earn about 86% more annually than those with only a high school diploma, and their unemployment rate is about half that of the latter; the key differences lie in the field of study, school, debt, region, and whether the first job after graduation matches the degree.

Higher education institutions themselves are also facing demographic and financial pressures. An extreme scenario studied by the Philadelphia Federal Reserve indicates that if enrollment drops by 15% from the 2019 baseline, as many as 80 institutions could close between 2025 and 2029; a gradual 15% decline could lead to about 23 closures.

In market mechanisms, AI and corporate recruitment contractions are suppressing demand for entry-level knowledge jobs. Employers will concentrate limited campus recruitment resources on a few schools and nearby areas; students will reprice based on tuition, debt, school sustainability risks, regional networks, and career exits. Beneficiaries are low-cost high-quality programs, top schools, technical vocational education, and institutions with strong recruitment networks; those under pressure are schools that rely on high tuition, low selectivity, and weak employment conversion.

Source: Public Information