Grant Cardone Argues College Isn't Worth The Investment, Citing '$1.7 Trillion Of Wasted Unforgivable Debt'

Real estate investor Grant Cardone recently questioned the value of a college education by approaching it as an underperforming asset, saying that it has led to "$1.7 trillion of wasted unforgivable debt."

His X post outlined additional reasons college feels like a bad investment, especially when considering the opportunity cost of getting into student debt instead of putting the same money into stocks and real estate.

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Unemployment Is Hitting Young Americans Hard

A job is the main promise of a college degree. Getting one is supposed to give you a significant competitive advantage over people who have only graduated from high school. However, Cardone points to high unemployment rates among recent college students as a red flag.

"4-year college degrees make up 25.3% of total unemployment," he said.

Not only did a large segment of unemployed workers graduate from college, but Gen Z college graduates have a higher unemployment rate than the national average. Fewer entry-level positions and AI have reduced work opportunities for young professionals, but student debt still lingers.

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College Tuition Continues To Rise Despite A Low ROI

Although more people have questioned the value of a college education, to the point where trade schools are seeing an uptick, tuition costs continue to rise. Rising university expenses have caused parents to cut back on vacations and major purchases to cover those costs in the future.

Cardone's X post casts doubt about whether those efforts are justified, especially when many college graduates are struggling in the job market. He said that the unemployment rate for college-educated workers has doubled since the 2008 Financial Crisis.

The unemployment figure for college-educated workers has approached pandemic levels, according to the chart in Cardone's X post. Furthermore, the chart specifies white-collar workers instead of the blue-collar employees who learn their craft through apprenticeships and trade schools.

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Wasted Debt

Cardone wrapped up his X post by lamenting about the $1.7 trillion of debt that students have incurred in the pursuit of higher education. The total debt repayments will exceed $1.7 trillion since interest accumulation also plays a role.

For instance, a 26-year-old recently discovered her student loan has a 17% interest rate, and despite paying $1,500 per month for two years, she is currently even deeper in debt. 

The money that went toward student debt could have gone to a mortgage, a diversified stock portfolio, or other investments. As young professionals without degrees continue to find work and unemployment rates for college-educated white-collar workers continue to go up, it's easier to question if college makes sense for everyone.

"Think college is worth the investment?" Cardone asked.

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