The New Reality: Why Traditional College Degrees Are Failing in the Modern Economy

I’m sure I’m going to get a lot of criticism for the things I’m writing in this article, but I believe that it is an important topic to address. College and University based education is something which has been extremely valued for the longest time. A degree is given its value based on the amount of things you learn and pride on structure and flexibility along with specialisation in a specific industry. The traditional college degree, long considered a ticket to success and a cornerstone of one’s professional journey, is increasingly losing its relevance. As the world of work evolves at a rapid pace, fueled by technological advancements and shifting industry demands, the gap between what is taught in our colleges and what is required in the real world is growing wider by the day. So, what is changing now and why am I saying that the value of a degree is falling??

Honestly, the only value a degree has in today’s time is of societal value and bragging rights. It’s reduced down to just conversation. The entire gist of learning and experience has in the last 15-20 years been completely dusted aside very jokingly and sparsely.

When I asked various people in my network, I got to know that people think there are various possible issues.?

Some said that the curriculums are outdated. While the world has seen massive technological advancements, the education system has largely failed to keep up. Courses that were once cutting-edge are now obsolete, and students are often left studying material that has little relevance to the modern job market.

Others say that the problem is in Private colleges mass producing uninterested graduates who are under heavy pressure to earn a return of investment in the field and industry they are not even interested in.

While there are some people who say that the issue lies in the fact that there’s a disconnect between industry and academia, where neither is ready to bend to the requirements of the other as it’s apparently too much work in the scattered and rigid systems. The rapid pace of change in the business world, driven by digital transformation, globalization, and the rise of new industries, has left many academic institutions struggling to keep up. The result is a generation of graduates who are ill-prepared for the demands of the modern workplace.

Some people from my network in universities even went far enough to say that the problem lies with higher education governing authorities like UGC and AICTE. They say that the industry demands degrees which are “accredited.”

Another thought process was that there’s a major issue in India, China, Sri Lanka, Pakistan etc. around population per capita and demand-supply of work in every industry.

In my opinion, the sole reason why these precious degrees are losing their value is actually because of the Internet. Ever since information has become so openly available and accessible, it has become easy for anyone to master the skills they wish to work in. The job market has become open and most importantly, with the upcoming rise of the “Gig Economy”, we see a continuous increase in democratisation of resources and increasing value of skills over a “piece of paper” degree.

Let’s explore a world without college degrees and conventional forms of employment:

The Society in Shambles

The first major thing which will happen is all the uncles and aunties of the world will not have anything to brag about their nieces and nephews achievements of bagging a degree or pointing out how their neighbour’s son is unemployed even after their degree from such a prestigious institution paying enough money to construct a home.

Universities and Colleges which are right now built with such huge infrastructure will end up looking for other forms of income. But wait, I have something for them as well in this article itself, and it’s better than scamming a million students over a decade.

Parents will end up saving lakhs. I wish the Indian middle class was good enough at saving money as much as they do to pay their children’s fees. The high fees is nothing but the result of the demand created by the parents to providing endless opportunities to their wards out of pure love, care and compassion. All these pure feelings of a parent are beautifully exploited first by EdTech companies like Byju’s (May it’s soul rest in peace and case studies). Then they are exploited for the same love and worry by coaching centres like Allen, FIITJEE, Akash and all these huge players. Some even go far enough to play at scale with their vast distribution like PhysicsWallah and Unacademy.

After all this as well, when they see that their child couldn’t clear an exam, whatever it might be, JEE, NEET or whatever, they look for the next best thing for them. Enters private universities. Mark my word, if you think the coaching industry sucks your hard earned money, blood, sweat and patience, these universities will not even let your skin and hair aside.

Why do parents pay so much and do so much? Because they’ve struggled their entire life. They’ve come up in their lives from humble beginnings to whatever they have today. They only want for their children to lead a comfortable, secure life on their own feet and end up giving a lot of padding for the same. These universities promise the cushions for the padding.

All in all, in a world without colleges, there will be peace. And… they just don’t want you to know that.

Practical and Online Learning

So, where do these universities go now? In this new world, the colleges I’m so unfairly beating up with my words still have a role. It’s just not policing around students over 75% attendances and pending fees and uniform codes.

Whatever anyone (including myself) says, colleges have invested money. If they fire around 80% of their useless professors and admin staff, they will have enough money to regularly maintain their labs and create an amazing infrastructure for Online Learning.

These places can become hybrid locations for lab access for interested students on a use-case and subscription basis along with other things.

The hostels can be a comfortable place for the youth to stay at while they’re travelling to learn and network more in the industry. These universities and colleges can become a hub for entrepreneurs to set up new industry and support institutional investors to bring out funds and access to ACTUAL ease of doing business.

Focused Trainings

Once 80% of the staff in universities is out, the remaining 20% will thrive! But what will these remaining 80% do? Get trained! The current model doesn’t incentivise training enough. Training should be equivalent to job security. This constant model will ensure that the number of useless staff members in universities decreases from 80% to 50% and slowly even lower.

Online Networking

Okay so, truth be told, in today’s times, it’s easier to network through online modes. The world has shinked to your mobile screens if you want to do something but we’re just not ready to incentivise and get the better of ourselves on this. If there are no colleges, networking won’t stop. It will only increase and get better.

Gig Economy

It is the inevitable change which the entire industry is only resisting but eventually will have to forcefully adopt. Gig economy is the future. No questions asked.

What it means basically is that people will work not with a particular company as their asset and under their identity, but instead work on a regular project basis independently. Companies can avail the services of individuals, but that’s all they can do. The work is being done by an individual and being credited to an individual with the value the person thinks is correct.

"In 50 years, everyone will be working for themselves." - Naval Ravikant

Yes, freelancing. Widespread freelancing. If you say that there’s no job security in this and all, just look around. There is NO concept called job security anywhere in the world. But if you are good at what you do, you’ll have money.

Decentralised Payments

People have a lot of problems with taxes. People also forget that they’re in a democracy. Opting for decentralised payments will eventually become the norm. The governments around the world can create as many barriers as they want, but the best practices and the most beneficial practices will surface up, it’s all just a matter of time.

This will in-turn create a more open market in the real terms.

Basically, it’s a capitalistic utopia. With its flaws, of course. And honestly, this isn’t a new concept either. I’m just reflecting and expressing my thoughts here.

The success of individuals who have thrived without traditional college degrees further underscores the shift towards a skills-first approach. High-profile entrepreneurs like Steve Jobs, Bill Gates, and Mark Zuckerberg are often cited as examples of how passion, innovation, and practical skills can lead to success without the need for a formal education.?

While these examples are extraordinary, they highlight a broader trend where skills, creativity, and experience are increasingly valued over academic qualifications. In India, too, there are numerous examples of successful professionals who have built thriving careers without a conventional degree. Many tech entrepreneurs, digital marketers, and creative professionals have leveraged their skills and experience to create successful businesses, often starting with little more than a passion for their craft and a willingness to learn.

Before I close this topic, I just want to mention my intent here. The actual large-scale issue:

The Students.

The diminishing value of college degrees has profound implications for students and graduates, many of whom find themselves disillusioned and unprepared for the realities of the job market.

1. Graduate Unemployment and Underemployment: The Harsh Reality

The oversupply of graduates, combined with the disconnect between academia and industry, has led to a significant rise in graduate unemployment and underemployment. Many degree holders struggle to find jobs that match their qualifications, leading to a growing number of graduates who are either unemployed or working in low-paying, low-skill jobs that do not utilize their education.

This situation is particularly acute in fields like engineering, where thousands of graduates enter the job market each year, only to find that their skills are not in demand. The result is a generation of young people who are increasingly frustrated, disillusioned, and questioning the value of their education.

2. Financial Burden

The financial burden of obtaining a college degree is another significant concern. The cost of higher education in India has risen steadily over the years, with many students taking on substantial debt to fund their studies. However, with the declining value of degrees and the increasing difficulty in securing well-paying jobs, many graduates find themselves struggling to repay their student loans.

This financial strain is compounded by the reality that many graduates are underemployed, working in jobs that do not provide the income needed to support themselves and repay their debts. The result is a growing crisis of student debt, with long-term implications for individuals and the economy as a whole.

3. Disillusionment and The Emotional Toll

Beyond the financial and professional challenges, college degrees also take an emotional toll on students and graduates. Many young people enter college with high hopes and expectations, only to find that their degrees do not lead to the opportunities they envisioned. This disillusionment can lead to a lack of direction, as graduates struggle to find their place in a job market that increasingly values skills over formal education.

This sense of disillusionment is further exacerbated by the pressure to succeed in a highly competitive environment. Many students feel overwhelmed by the demands of the education system, leading to burnout, stress, and mental health issues. The result is a generation of graduates who are not only unprepared for the job market but also emotionally and mentally drained.

And also, it’s not just the academia which needs to take a hit here.

Industry is also accountable here.

By recognizing and valuing alternative credentials, employers need to ensure that they are hiring candidates who have the skills and experience needed to succeed in the modern workplace.

The Way Forward: A Call to Action

The diminishing value of college degrees and the shift towards a skills-first approach in the job market present both challenges and opportunities for India’s education system. To ensure that our education system remains relevant and effective in preparing students for the future, it is essential to embrace change and take a proactive approach to educational reform.

Educational institutions must take the lead in rethinking their approach to higher education. This involves updating curricula, incorporating practical skills and experience, and offering flexible learning pathways that cater to the diverse needs of students. By evolving to meet the needs of the modern world, colleges can ensure that they remain relevant and effective in preparing students for the challenges of the future. Basically anything to not force feed words into the mouths of the youth to parrot them out for a piece of paper and a stamp.

Employers have a critical role to play in supporting educational reform. By prioritising skills and experience over formal degrees in their hiring practices, employers can encourage a shift towards a more skills-based approach to education. Additionally, employers can support continuous education and upskilling by offering training programs and supporting employees in their pursuit of further education.

Finally, students and parents must be open to considering alternative pathways to success. While a traditional college degree may still be the right choice for some, it is essential to recognize that there are many other ways to acquire the skills and experience needed for a successful career. By embracing alternative education pathways, students can ensure that they are well-prepared for the demands of the modern job market.

All I’ll say to all parents is, if you had hard times, they made you strong people. Stop trying to create excessively good times for your children because good times make weak individuals. Let them struggle on their levels. JEE can be cracked without coaching. NEET can be cracked without coaching. Financial Stability can be achieved without a piece of paper if it’s coming at the cost of livelihood.?

Conclusion

The redundancy of traditional college degrees is a pressing issue that requires urgent attention. As the job market shifts towards a skills-first approach, it is essential to rethink our approach to education and embrace change. By promoting a more flexible, skills-based, and lifelong approach to learning, we can ensure that our education system remains relevant and effective in preparing students for the challenges of the future. The time for educational reform is now, and it is up to all of us—educational institutions, employers, government, and individuals—to take action and build a brighter future for India’s youth.