Fears over AI’s impact on entry-level work are nudging more young adults toward graduate school, even as headline economic indicators remain solid. Nearly 78% of prospective grad students plan to enroll within a year, up from 69% a year ago, according to a Jenzabar/Spark451 survey. While higher-ed enrollment typically rises in recessions, researchers say the current impulse reflects anxiety about future job prospects and a tougher early-career market for 16- to 24-year-olds, whose unemployment sits at 8.5%. Consultants report students see advanced degrees as a hedge but are increasingly cautious about cost and payoff. Programs emphasizing internships and demonstrable career outcomes may have an edge. New federal limits set to take effect July 1 cap lifetime borrowing at $100,000 for graduate study and $200,000 for professional programs and eliminate Grad PLUS loans, adding another variable to the calculus. Experts say institutions will need to prove clear returns as AI reshapes hiring.
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