The decline in college faith among teens is leading to a surge in interest in skilled trades.

• Some high school students are opting for career-focused pathways instead of a four-year degree due to worries about college expenses and student loan debt.
• The "toolbelt generation" is emerging due to the increasing opportunities in the skilled trades, which offer a secure job track and high earnings potential.

Since the start of the Covid pandemic, the number of undergraduates in college has decreased by over 900,000.

In 2023, the rate of high school graduates enrolling in college remained stable compared to the previous year, according to a report from the National Student Clearing House Research Center. This was an optimistic sign, said Doug Shapiro, the Center's executive director. Despite the data showing that the rate of high school graduates enrolling within a year of their graduation is significantly higher for students from low poverty high schools.

Shapiro expressed concern over the growing disparities in education for low-income students.

The top 10 highest-paying college majors are in demand, but the cost of attending some colleges has skyrocketed to nearly $100,000 a year. In response, more top colleges are implementing no-loan policies.

High school students are increasingly considering alternative plans after graduation due to concerns about rising costs and large student loan balances, according to a report by Junior Achievement and Citizens. The report is based on a survey of 1,000 teenagers between the ages of 13 and 18 conducted in July.

Approximately half of individuals believe that a high school degree, trade program, two-year degree, or other enrichment program is the highest level of education required for their desired career path.

A majority of people, 56%, believe that gaining practical experience in the real world is more valuable than earning a college degree.

Ed Grocholski, chief marketing officer at Junior Achievement, stated that teens are gaining a clearer understanding of the alternatives to college if they choose not to pursue it. Advancements in artificial intelligence and technology training have influenced some young people's decision-making process.

'You may not necessarily need a college degree'

"Although cost is a consideration, it's recognized that a college degree isn't always necessary for success," Grocholski stated. "This message is resonating with young people."

Grocholski stated that there are more career-connected pathways available at a lower cost, including online credits and certifications, in addition to college. He explained that while college is a valid option, there are other alternatives that were not as clear a few years ago.

A study commissioned by EdAssist by Bright Horizons highlighted the impact of student loan debt on reevaluating the worth of college.

According to Bright Horizons' fourth annual education index, 86% of U.S. workers with education debt believe that their degree was not worth the toll that student loans have had on their overall well-being. Additionally, 53% of workers stated that the knowledge of incurring additional debt has prevented them from pursuing further education, as polled in May 2021 with more than 2,000 employed adults.

The rise of the 'toolbelt generation'

As college costs continue to rise and student loan debt becomes increasingly burdensome, an increasing number of individuals are turning to skilled trades careers as an alternative.

The number of registered apprentices increased by 64% between 2012 and 2021, with significant growth in industries such as construction, public administration, and education, according to data from the U.S. Department of Labor.

The National Student Clearinghouse found that enrollment in vocational programs increased by 16% from 2022 to 2023.

The aging of experienced tradespeople is contributing to a shortage of skilled workers, which in turn is increasing the number of job opportunities and pay.

Ted Jenkin, CEO and founder of oXYGen Financial in Atlanta and a member of CNBC's Financial Advisor Council, stated that the law of supply and demand is the positive aspect of economics.

The college affordability crisis and the emergence of alternative career paths have contributed to the formation of the "toolbelt generation," according to Jenkins. This generation is benefiting from the stable job prospects and high salaries that vocational jobs now offer.

Jenkin stated that the difference between white-collar and good blue-collar jobs is no longer significant.

According to federal data, trade school students are more likely to secure employment after graduation and work in a job related to their field of study compared to degree-seeking students.