* insurance policy, where students use it to avoid limiting themselves to low-status and low-paying careers
* lottery ticket, the gateway to a "prestige" career track [1]
* status signaling mechanism, where young people flex their educational elitism [2]
And higher ed is arguably bad at what its supposed be good at - a delivery mechanism of relevant knowledge. If you have ever interviewed a fresh grad who didn't study "Cracking the Coding Interview" or did not have a few "side projects" under their belt, then you know what I am talking about.[3] The internet is the most effective information distribution delivery and it's much cheaper, no wonder the value of college is in question.
[1] Consulting, finance, corporate middle management, grad school
[2] How many times have you been on a date and you tell or ask the other person where they wen to college, what they majored in, etc
[3] Arguably, the standard that hiring managers set for new grads is too high. Perhaps it's the employer that should be training fresh grads, but that is not how the current job market works. I think about this a lot because it causes problems for both young people and employers.