Has the college bubble been popped? That is the question. Decades ago, students could cover tuition by working summer shifts at the nearby McDonald's. Today, Gen Z needs to take out exorbitant government-backed student loans just to walk onto a university campus. But the days of decadence and opulence by these institutions may be winding down as more young Americans abandon their degree pursuits and the White House introduces noteworthy reforms.
Poppin’ the College Bubble
Nominal average college tuition has risen substantially since 2000, ballooning by about 200%. A public institution can cost more than $10,000, while a private university can cost close to $40,000. Unless the Bank of Mom and Dad were open for business and the youngins worked throughout high school, a student loan was necessary to get a degree. That is why national student loan debt has surpassed the trillion-dollar mark.
Change could be coming to the higher education circuit as colleges and universities realize that they priced too many kids out of an education and failed to deliver on their product.
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A new Bloomberg analysis found that a growing chorus of post-secondary institutions has already lowered tuition this year or begun doing so heading into the 2027-2028 academic year. The news outlet cited Emory & Henry University as one example, with the institution slashing undergraduate tuition in half to $19,000, plus $5,000 merit scholarships and other savings for in-state attendees.
The University of Tulsa also cut its tuition rates by more than half to $25,000. Concordia University is enacting a "Tuition Reset 2.0 for 2027 to continue addressing affordability and access issues for students and families," the institution told Fox Business.
So, are these facilities becoming altruistic, or is it evolving economics? Various motives are at play.
Trumponomics and Disappointment
The White House may have saved the higher education system with a single significant change. As part of the One Big Beautiful Bill, the federal government introduced an earnings standard titled "Do No Harm." This measure would deny students enrolled in degree programs that lead to low-earning careers access to federal student loans. The Department of Education identified various fields, including arts, cosmetology, music, religious studies, and social work.
"If a program cannot show that it leaves its graduates financially better off than if they had never enrolled, it should not be underwritten by federal taxpayers," Under Secretary of Education Nicholas Kent said in a statement earlier this month.
Economists have regularly argued that this would be a critical change, as taxpayers should not be on the hook for students studying areas with little demand and poor returns on investment. If students desired to study Lesbian Dance Theory, they would apply for loans at private lenders. Additionally, since colleges and universities no longer receive guaranteed cash to offer these programs, they could focus on high-demand fields of study.
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Another factor has been fewer young people enrolling in post-secondary programs. Estimates vary, but the number of high school graduates signing up for college could decline by 13% over the next 15 years. Polls also indicate that young Americans' interest in attending a university has slipped in recent years. One Gallup survey found that just 31% of adults say a four-year college education is "very important," the lowest number in five decades.
Experts argue that more families realize the financial pressures are not worth it. This assessment also makes sense, since recent college graduates between 22 and 27 have an unemployment rate of almost 6%, higher than the national jobless rate of more than 4%. Plus, many employers have signaled they are willing to hire young people off the street and train them for positions.
Make College Great Again?
The country has soured on America’s education system for various reasons, from political indoctrination to opulent campuses. Indeed, the college bubble encompasses not just cost, but what colleges have gotten away with over the years. If Walmart ran a university and graduates failed to deliver on its $30,000 promise, the usual suspects would call it a failure of capitalism. But when it is Harvard, Stanford, and Yale, the chronic complainers will say more government intervention is needed.
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