For many high school graduates in the U.S., college seems like the automatic next step—but should it be?

While a degree can open doors, the journey comes with real risks that many don’t consider. From the financial strain of student loans to the stress of mental health challenges, college is far from a guaranteed win. Before you commit, let’s unpack the biggest risks of college—and how to protect yourself if you decide to take the leap.

College has become the “default” option for many high school graduates, at least in the United States, but that was not always the case. Decades ago, it was much more common for high school graduates to explore other options including the military, community college, vocational schools, or directly entering the workforce. 

Now it seems that anything other than attending a 4-year university is rarely considered. But college may not be the right option for everyone, and it’s important to fully understand some of the risks that come with going to college.

We’re partnering with GradGuard to highlight some of the biggest risks of going to college – and also how you can insure against them to protect your college investment. For example, GradGuard’s tuition insurance provides up to 100% reimbursement for the cost of tuition, housing and academic fees due to a covered medical withdrawal. We’ll also cover GradGuard’s renters insurance policy below. 

How Risky Is College?

Everything in life comes with some level of risk. Going to college is no exception, when you consider that you’re not guaranteed a return on your money and your time. Whether you would consider college “risky” depends on your own level of risk tolerance. Still, it’s important to understand the various risks of attending college, so you can make your own informed decision.

The 5 Biggest Risks Of College

Attending college in the U.S. has never been more expensive, which is why negative experiences can be magnified when you consider the amount of money you’ve invested. With that in mind, here’s a closer look at some of the biggest risks of going to college:

1. Not Graduating

One of the potential risks of college is not graduating. You might spend years of your life and tens of thousands of dollars (or more) pursuing a degree that you don’t end up completing. 

This is actually one of the worst outcomes of college because you borrow money and then never get the benefit. The latest data shows that only 62% of people who start college actually finish it within 6 years.

And depending on where you go to school, the odds you graduate can be stacked against you.

2. Not Getting A Job In Your Field

Possibly even worse than the risk of not graduating is the risk of actually graduating with a degree and then finding it difficult or impossible to get a job in your chosen field. One way to help mitigate this risk is by carefully choosing your choice of degree.

Some degrees are more valuable than others in terms of the likelihood of finding a job. Still, even with the most marketable degree possible, there is some level of risk.

If you want to know how your degree might stack up, check out this study from FREOPP where you can select your college and program, and it will tell you whether you are likely to get a positive return on investment.

3. Student Loans

There are many ways to pay for college, and student loans are definitely a part of many students’ payment plans. Even if you graduate and get a job, you’ll still need to pay back your student loans. 

Depending on how much you owe, your student loan balance could cause you financial problems and put your financial future under a degree of risk.

Remember, the collateral for your student loans is your future earnings. So, if you struggle to get into a decent paying career, you’ll also struggle to repay your loans.

4. Mental Health Or Other Health Risks

Attending college can be stressful, especially if you are living away from home for the first time or if you already have pre-existing mental health conditions. Stress can cause existing mental health challenges to intensify or cause new challenges.

Mental health and other health risks are also a huge reason people drop out of college. Upwards of 14% of college students leave school due to mental health issues. And this can be a huge burden on the student and their families – both emotionally and financially.

5. Dorm Room Risk

If you’re living on campus in the student dorms, you may have a higher degree of risk than you might be used to. I’m referring to the potential of theft, water damage, or even fire.

A good renter’s insurance policy can help mitigate against some of these risks, with a policy that includes liability and personal property protection, but many students don’t have any sort of applicable policy.

Insuring Against These Risks

Many people don’t realize that there are ways to insure against some of these risks – and it’s very cost effective. GradGuard is a specialized insurance offering that provides both tuition insurance and college renters insurance.

Tuition insurance can protect your investment if you have to leave school due to a serious covered medical condition. GradGuard markets up to 100% reimbursement for tuition, room and board, and academic fees when you are forced to withdraw due to serious medical conditions, chronic conditions, or psychological reasons. Given that there 1 in 4 students who start college don’t return for a second year, this can be very helpful.

If you’re in a dorm room or even living off campus, you may also need college renters insurance. Think about all the stuff you’re taking with you to college including your laptop, bike, and all your clothes and shoes. When the unexpected happens, such as a fire, flood, or theft, a renters insurance policy, like one from GradGuard, can cover the cost to replace stolen or damaged student property.

Check out GradGuard here and get a quote >>

Should You Still Go To College?

Now that you’ve learned about some of the biggest risks of college, does that mean you should abandon your dreams of a university degree? Probably not — as we mentioned earlier, there is a certain level of risk with everything in life, and if you try to read a truly risk-free life, you will end up missing out on many things.

Is there a higher risk of a fire in a college dorm than in a residential house? Perhaps, but that still doesn’t make it likely.

If you still want to attend college but are concerned about some of the risks, you might consider buying insurance to mitigate your risk. There are companies that provide renter’s insurance as well as tuition insurance, and these types of insurance policies can be great options to cover you against low-likelihood events that would have an outsized impact if they happened.

Final Thoughts

Everything in life carries some sort of risk associated with it, and going to college is no exception. Being at college, especially if you’re living on campus or away from home for the first time, comes with possibly increased risk of theft, property damage, and mental health challenges.

You are also exposed to the risk of not graduating or not finding a job in your chosen field, meaning that you might be out tens of thousands of dollars or more (not to mention wasted time).

Still, there are many positive things that come from going to college, and you’ll have to decide for yourself how the risks and rewards balance out, and whether college is worth the investment for you. A lot of it will depend on your own risk tolerance, along with your financial, personal, and family situation. 

Certain types of insurance policy (like renter’s insurance or tuition insurance) can help mitigate the risks of going to college — check with your insurance agent or broker to see if a policy can make sense for you.