Source? Or just speculation? I for one, know many people living in basements, but not a single one of them has a college degree. Anecdotal evidence only goes so far.
"It's time to be more discerning consumers of higher education."
Higher education is as necessary today as it has always been, and will continue to be for the forseeable future. We need trained professionals to work on highly technical areas, or we can't progress. How else are we going to have mechanical, aerospace, electrical, chemical engineers and many other professions?
This doesn't mean that a college or university is for everyone though. It is left to each person to balance the very subjective pros and cons of deciding whether to go to college or not. Also no students are forced to attend highly expensive colleges, since most of the time there exists a high quality public institution available.