The share of high school graduates who dropped out of college and blamed the cost of living increased to 67% this year, from 51% last year. New survey data from education consultancy EAB (PDF file).
This 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 go to college has stagnated at 89% among EAB’s surveyed high school graduates, but the reasons students choose to forgo college have changed. Pandemic-era explanations like “not mentally prepared” are fading. Practical economic pressures have replaced them – and more students are going straight into the workforce as a result.
by numbers
Some of the key data points from the survey were:
- 67% of non-enrollees cited living expenses (up from 51% in 2025)
- 25% said they couldn’t afford the full cost of college
- 26% wanted to leave – down from 39% in the EAB’s 2024 survey
- 12% said they needed to work, up 3 points from last year
- Of the 9,516 graduates surveyed, 89% enrolled in college in the fall of 2025
What enrolled students want: Among new college students, career benefits dominate how they define value. 44% cited successful job placement after graduation as one of the top attributes of a quality education, followed by internships and co-ops (35%) and scholarship availability (35%). About 30% preferred financial aid packages, and 29% cited moderate tuition prices.
Higher-income students pay more attention to career outcomes, while first-generation students value financial aid more than their peers.
AI Factor: AI is reshaping the way students think about majors and careers before starting classes. 42% of new college students said they expect AI to impact their careers, and nearly 10% have already changed their intended field of study because of it. Tech and computer science majors were left out the most, cited in 39% of written responses, followed by creative fields at 23%.
Half of the students said they felt unsure about the impact of AI on their future careers. About one-third reported feeling worried, anxious or doubtful. Only 13% described themselves as optimistic and 7% as excited.
One student told the researchers: “I initially chose computer science. After seeing AI taking over entry-level jobs, I switched to electrical and computer engineering.”
Students are applying to more colleges: Students are hedging their bets more. The average undergraduate now submits 7.1 applications and 5.2 gain admission – up from 6.1 applications five years ago. Admissions deposits remained steady at 1.4 per student, but graduates from families earning more than $120,000 deposited an average of 1.5, suggesting wealthier students are keeping many options open until later in senior year.
How it connects: College Investor has tracked the difference between the sticker price and the actual out-of-pocket cost for years. Tuition discount now averages 56% (a record high), yet most families still pay $25,000 to $100,000 out of pocket after including room, board, fees, and living costs.
Housing and meal plans alone routinely add up to $20,000 to $30,000 per year, often more than in-state tuition at public colleges. EAB data shows that cost of living is now the deciding factor for two-thirds of students who turn away from higher education altogether.
Affordability has always shaped college access, but the math has changed. Students aren’t just evaluating tuition against future earnings — they’re also evaluating rent, groceries, and whether AI will be needed for their degree by the time they graduate. Colleges that can’t clearly answer those questions will continue to lose applicants into the workforce.
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