Is College Worth It in 2026? Plus, How to Split Solo 401(k) Contributions to Save More

May 7, 2026

AI Summary

5 min read

The episode examines two practical financial questions facing many Americans: whether pursuing a four-year college degree remains a sound investment for recent high school graduates, and how self-employed individuals can structure contributions to a solo 401(k) to maximize retirement savings. These topics connect through the lens of shifting economic conditions, including the rise of AI, evolving job security perceptions, and policy changes that affect both education financing and retirement planning.

College value amid shifting perceptions

Recent analysis of federal data indicates that nearly half of 2026 high school graduates will enroll in four-year colleges, with more than a third of those attending public universities expected to take on student loans. Surveys show a clear tension in public views: nearly 70 percent believe college is less essential than before for earning a good living, yet 65 percent still consider a bachelor's degree a smart financial choice. This reflects average earnings data favoring degree holders, tempered by concerns over debt loads, AI's potential effects on office and tech roles, and a competitive entry-level job market.

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What you'll learn

1 (02:48) **College Value in 2026** - Examines whether a four-year degree remains a smart financial move for new high school grads
2 (04:52) **AI's Impact on Career and College Choices** - Discusses how generative AI is reshaping student decisions
3 (07:01) **Student Loan System Realities** - Explains why students still borrow despite widespread belief the system is broken
4 (08:20) **Projected Student Debt for 2026 Grads** - Breaks down the $43,500 average loan estimate
5 (09:37) **Strategies to Minimize Borrowing** - Practical steps for students and parents
6 (11:16) **New Federal Repayment Plans** - Details changes effective July 1 for new borrowers
7 (13:02) **Is College Worth It?** - Hosts share personal verdicts

+ Full timestamped outline available in the app

Show Notes

Learn what 2026 grads could borrow for college and how solo 401(k) contributions can build retirement wealth.

How much could it cost to go to college in 2026, and is a four-year degree still a smart financial move? Hosts Sean Pyles, CFP®, and Elizabeth Ayoola dig into a new NerdWallet analysis of federal data with senior news writer Anna Helhoski and NerdWallet data writer Erin El Issa. They explore why most Americans say the federal student loan system feels broken even as they still see college as worthwhile, the rising appeal of the trades, how AI is shifting the way teens think about majors and careers, and what new borrowers could expect from the federal repayment options rolling out July 1.

Then, Ryan Sterling, wealth advisor at NerdWallet Wealth Partners, joins Sean and Elizabeth to help answer a listener's question about how to split solo 401(k) contributions between the employer and employee sides of the account to maximize retirement savings. They discuss how solo 401(k)s differ from standard workplace plans, how to think about the contribution split if you also have a W-2 job, when traditional versus Roth contributions could make more sense, how solo 401(k)s stack up against SEP IRAs, the investment flexibility you could gain through a brokerage-based plan, and the common mistakes business owners make when trying to maximize retirement savings.

NerdWallet Wealth Partners, LLC is an affiliate of NerdWallet Inc. NerdWallet Wealth Partners is a fiduciary online financial advisor, offering low-cost, comprehensive financial advice and investment management. Learn more at nerdwalletwealthpartners.com/smart

Read NerdWallet's 2026 high school grad analysis here: https://www.nerdwallet.com/student-loans/studies/high-school-grad-analysis

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