As millions of young people weigh what comes after high school—whether that’s a traditional college degree, a skilled trade program, or skipping higher education altogether—a new option will soon enter the mix.
Sal Khan, the founder and CEO of Khan Academy, announced this week the launch of the Khan TED Institute, a joint venture with TED and testing giant ETS that will offer a low-cost, AI-focused degree designed to rival elite institutions like Harvard and Stanford.
“Higher education has served many, many people very, very well. And we think there’s many good reasons to go to a traditional university, but not everyone has access to those opportunities,” Khan said in a video announcing the program.
“On top of that, the world is changing very, very, very fast. We want to make sure that there’s ways even for people with traditional degrees to continue to reskill to supplement those degrees to make sure that they are optimally prepared for an ever-changing future.”
Khan TED Institute is expected to launch within the next 12 to 24 months and will seek academic degree accreditation. Its price tag is projected to come in under $10,000—a fraction of what students pay at the country’s most prestigious schools. By comparison, tuition alone at Stanford is set to reach $67,731 next academic year, while Harvard’s is $62,226.
The program will launch with a bachelor’s in applied AI and expand over time, targeting everyone from recent graduates to mid-career professionals—especially those shut out of traditional universities or looking to layer in-demand tech skills onto an existing degree. Khan said the goal is not to replace traditional higher education—but to expand access and better align learning with a rapidly changing job market.
Young people’s relationship with higher education is increasingly strained as the financial burden of a degree continues to climb. More than 42.5 million Americans hold federal student loan debt, with the average balance exceeding $39,000.
Simultaneously, many graduates are struggling to gain a foothold in the labor market: 5.6% of recent college graduates are unemployed, while 42.5% are underemployed—working in jobs that typically don’t require a degree—according to the Federal Reserve Bank of New York.
This dynamic has left some 51% of Gen Z graduates with regrets about pursuing a degree altogether, a 2025 Indeed survey found.
Khan said the new institution aims to close that gap by working directly with corporate partners—including Google, Microsoft, Accenture, Bain, McKinsey, and Replit—to shape curriculum and ensure it reflects the skills employers actually value. This includes a focus on both in-demand AI and technical skills as well as soft skills like collaboration, community, creativity, and communication.
