Student Loan Debt Stress is Disrupting the School-to-Work Trajectory

In an era of both ongoing job uncertainty and rapid-fire advancements, working Americans are thinking more about their education, job security, and future career goals. Collectively, this is fueling how and when they enter the workforce, as well as what they want from employers to achieve what is ultimately mutually beneficial upskilling.

According to the third annual Education Index, commissioned by EdAssist by Bright Horizons (NYSE:BFAM) and conducted by The Harris Poll, upskilling is firmly top of mind with 77% of workers interested in developing new skills or pursuing additional education. Yet the desire to avoid large amounts of debt has many prioritizing return-on-investment over prestigious degrees, choosing to work for employers willing to cover a portion of the cost. In fact, nearly half (48%) say that they would prefer to forego the typical education-to-career path, opting instead to enter the job market in a less advanced job and then receive an employer-sponsored education later. Additionally, 65% say the days of needing a traditional college degree to get a good job are over, with 77% believing other forms of education like certifications and online courses offer more “bang for your buck” than a traditional college degree.

“With student loan payments restarting and mounting concerns around AI upending industries, employees are seeking both stability and support more than ever before,” said Diane Bartoli, Senior Vice President of EdAssist by Bright Horizons. “These stressors are also empowering many to think beyond traditional college programs and work trajectories to achieve both their career and financial goals. This shift provides a golden opportunity for employers that offer a wide array of education-focused benefits to stand out as a leader in the ongoing talent war.”

Cross-Generational Employees’ Education Ambitions Reach All Time High

Interestingly, new skill development isn’t just a dream for the young but a recognized currency across generations, as evidenced by the number of more established employees who are eager learners themselves:

• In addition to enthusiastic younger workers, more than half (58%) of Boomers and the majority (74%) of Gen Xers are interested in developing new skills or pursuing additional education (compared to 87% of Gen Z and 86% of Millennials)
• More than a third of Gen X (43%), as well as 32% of Boomers, report future career opportunities as one of their primary goals if they were to pursue continuing education

This shows that Gen X and Boomers aren’t just biding their time until retirement – they remain both vital players in the workforce and a rich source of willing and able participants in an effective upskilling strategy.