Is college the best move for high-school grads?

A college education was once widely seen by Americans as the golden ticket to success. But now, it’s starting to look more like a scratch-off with bad odds.

Palantir recently launched a new “Meritocracy Fellowship,” under the idea that existing US universities are no longer needed to train high-quality employees in the workforce.

The defense company’s new program, which is set to graduate its first class later this month, offers high-schoolers a fast-track alternative to a college degree.

• The four-month fellowship saw enrollees first take a four-week seminar on Western civilization and US history, followed by embedded work on live company projects.
• Over 500 hopefuls applied for the program—which required Ivy League-level test scores to qualify—with just 22 “Palanteens” making the cut.
• The company says those who perform well in its fellowship will be offered full-time roles.

Palantir is one example of a broader shift

Rising tuition, declining enrollment, and disappointing employment outcomes have led many high schoolers—and Americans more broadly—to question whether college still delivers on its promise.

• 70% of Americans currently say the US higher-education system is heading in the wrong direction, per Gallup polling published last month, the highest such figure on record.
• The same survey found 55% of Americans say colleges and universities do a fair or poor job when it comes to prepping students for well-paying jobs in today’s economy.

As of this past July, 58% of Americans who graduated college in the past year had yet to find stable work, up sharply from the ~25% of millennials and Gen Xers who faced the same issue, according to a Kickresume report.

On the flip side

A wide body of research indicates most college degrees still pay off, at least on average and in the long run.

• The median income for a US household led by someone with at least a bachelor's degree in college stood at $132,700 last year—more than double the median income of a household led by a high-school grad ($58,410), per recent Census Bureau data.
• That gap has only widened over the past two decades, with earnings for college-led households rising by 6.3% compared to 3.2% for households of high school graduates.

Bottom line: More Americans are coming to the conclusion that not all college degrees lead to a good salary, especially as new grads face one of the toughest job markets in decades.

📊 Flash poll: If you were a high-school senior currently, which of the following would you most likely choose?

• Attend a four-year college/university
• Attend community college
• Attend a non-college jobs program (trade school, Palantir fellowship, etc.)
• Try to find employment immediately
• Other