Students Pick Work Over College As AI Rewrites Career Plans

The share of high school graduates who skipped college and blamed cost of living jumped to 67% this year, up from 51% the year before, according to new survey data from education consultancy EAB (PDF File). 

The shift signals that the broader economy (not just sticker price) is now the primary force pulling students out of higher education.

Why It Matters: The number of students planning to attend college has stabilized at 89% of EAB’s surveyed high school graduates, but the reasons students opt out have shifted. Pandemic-era explanations like “not mentally ready” are fading. Practical economic pressure has taken their place — and more students are heading straight into the workforce as a result.

By The Numbers

Some of the key data points from the survey were:

• 67% of non-enrollees cited cost-of-living expenses (up from 51% in 2025)
• 25% said they couldn’t afford college outright
• 26% wanted time off — down from 39% in EAB’s 2024 survey
• 12% said they needed to work, up 3 points from last year
• 89% of the 9,516 surveyed graduates enrolled in college in fall 2025

What Enrolled Students Want: Among new college students, career payoff dominates how they define value. 44% named successful job placement after graduation as one of the top characteristics of a quality education, followed by internships and co-ops (35%) and scholarship availability (35%). About 30% prioritized financial aid packages, and 29% cited moderate tuition prices.

Higher-income students leaned harder on career outcomes, while first-generation students weighted financial aid more heavily than their peers.

The AI Factor: AI is reshaping how students think about majors and careers before they even start classes. 42% of new college students said they expect AI to influence the career they pursue, and roughly 10% have already changed their intended field of study because of it. Tech and computer science majors were the most commonly abandoned, cited in 39% of write-in responses, followed by creative fields at 23%.

Half of students said they feel uncertain about AI’s impact on their future careers. About a third reported feeling concerned, anxious, or skeptical. Only 13% described themselves as optimistic, and 7% as excited.

One student told researchers: “Initially I chose computer science. After seeing AI replacing entry-level jobs, I switched to electrical and computer engineering.”

Students Are Applying To More Colleges: Students are hedging their bets more. The average graduate now submits 7.1 applications and receives 5.2 admits — up from 6.1 applications five years ago. Admissions deposits held steady at 1.4 per student, but graduates from households earning more than $120,000 averaged 1.5 deposits, suggesting wealthier students are keeping multiple options open later into senior year.

How This Connects: The College Investor has tracked the gap between sticker price and real out-of-pocket cost for years. Tuition discounting now averages 56% (a record high) yet most families still pay $25,000 to $100,000 out of pocket once room, board, fees, and living costs are included.

Housing and meal plans alone routinely add $20,000 to $30,000 per year, often more than in-state tuition at public colleges. EAB’s data shows that those living costs are now the deciding factor for two-thirds of students who walk away from higher education entirely.

Affordability has always shaped college access, but the math has changed. Students aren’t just weighing tuition against future earnings — they’re weighing rent, groceries, and whether AI will still need their degree by graduation. Colleges that can’t answer those questions clearly are going to keep losing applicants to the workforce.

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