Higher Ed’s Newest Competitor Isn’t Another College—It’s Microcredentials

If there's one thing I've experienced in higher education, it's leadership's concern with the school down the street. They analyze peer institutions and track yield rates and discount rates against our competitors in an effort to compete in the marketplace.

But here’s the reality: Our newest competitor isn’t another university.

It’s Google Career Certificates.

It’s Coursera.

It’s Codecademy.

It’s IBM Skills Academy.

These programs promise job-ready skills, real-world projects and six-figure career pathways—all in months, not years. 

Students are paying attention. (And I don't blame them.)

Why Wouldn’t They?

Take the Data Analyst career pathway on Codecademy:

• 70 hours of training—not four years.

• No prerequisites—no gen ed requirements, no admissions process.

• Real-world projects to build a portfolio.

• An interview simulator and job-readiness checker.

• A projected salary of $125,000

Compare that to the traditional college route:

• 4 years of coursework

• Required general education requirements

• 4 years of tuition costs

• An often unclear connection between major and career

If you were an 18-year-old deciding between these options, which one would seem more appealing?

The Good News? Parents Aren't Sold, but They Are Asking Questions

In Ologie's most recent Market Survey, parents of Gen Alpha still believe there is a strong value in a college education, overall. But, with that said, Gen X and elder millennial parents—many of whom are still paying off their own student loans—are increasingly skeptical.

But it's not because of aid dollars, it's about debt.

What the Data Says About Parents’ Views on College vs. Microcredentials

• Gen X parents who still carry student loan debt are less likely to encourage their children to take on significant loans. Between 2010 and 2020, there was a 12 percentage point decline in students taking out loans, and those who did borrowed smaller amounts. (EAB)

• Millennial parents—who hold over $1 trillion in student loan debt—are more open to alternative credentials that offer faster, lower-cost career training. (EAB)

• A 2021 ExcelinEd survey found that many parents are more open to alternative credentials that offer direct career pathways and lower costs.

What Higher Ed Needs to Do—Now

Microcredentials, bootcamps and certificate programs aren’t just alternatives anymore—they are direct competition. Students are asking, Why wait? Why spend the money? And frankly, they’re not wrong to ask.

The challenge for colleges isn’t just getting students in the door anymore. It’s proving, over and over again, that the degree is worth it.

Here's what we need to focus on:

✔ Make career pathways crystal clear. Students shouldn’t have to dig to find out what jobs a major leads to or how much they can expect to earn. Make it obvious. It could mean providing transparent salary data, job placement rates or lifetime earning potential.

✔ Integrate real-world experience. Internships, co-ops, apprenticeships—these should be integrated into every program, not just recommended. Perhaps offer stackable certificates or 4+1 or 3+1 options (for advanced dual credit earners) to also earn a master's degree.

✔ Offer accelerated, flexible, modular learning options. Stackable certificates, industry-recognized credentials, and accelerated pathways can help students build value without committing to four years upfront.

✔ Be transparent about cost vs. ROI. Tuition is a major concern. Schools need to explain exactly how a degree pays off—not just in general terms, but with real data. Offer loan repayment scenarios and use relatable comparisons ("The average student loan payment is equal to three streaming subscriptions a month.")

Higher ed’s biggest competition isn’t another college—it’s the promise of faster, cheaper, more direct routes to a career. 

And if institutions don’t start adapting, they won’t just lose students to other schools. They’ll lose them to an entirely different system of learning.