Monetary Woes Proceed for Gen Z College students: Simply 5% Have Secured the Funds to Absolutely Pay for School This Yr – Tech Journal

In July 2024, ScholarshipOwl continued our on-going deep dive into studying if this yr’s college-bound Gen Z have the funds wanted to pay for school within the 2024-25 faculty yr. Even though the Fall tuition invoice might be due in August for many faculty college students, we discovered that simply 5% of scholars have secured the funds essential to pay for school this yr. This information may be very disappointing, but additionally unsurprising, as a result of frequently rising value of faculty, in addition to on-going inflation woes. In reality, the Training Information Initiative stories that over the previous twenty years, the price of faculty tuition and charges at public universities has risen 179%.

Our survey additionally demonstrates that even MORE college students are struggling to afford faculty in comparison with final month’s surveythat discovered that solely 10% of scholars have the funds wanted to pay for school this yr.

But there may be constructive information arising from our survey as properly – we will see that Gen Z is resilient and intelligent, as most of our respondents have developed a multi-pronged technique for elevating the funds wanted to attend faculty this yr.

Who participated within the survey?

In July 2024, ScholarshipOwl surveyed highschool and faculty college students on the ScholarshipOwl scholarship platform to study extra about their monetary preparedness for school. A complete of 13,345 college students responded.

Among the many respondents, 64% have been feminine, 35% have been male, and 1% recognized themselves as a distinct gender id or most well-liked not to reply to the query. Almost half (42%) have been Caucasian, 29% have been Black, 17% have been Hispanic/Latino, 6% have been Asian/Pacific Islander, 2% have been American Indian/Native American and 5% chosen “different” or most well-liked not to reply to the query.

Over one-quarter (27%) of the respondents have been highschool college students, with the overwhelming majority highschool seniors; almost two-thirds (60%) have been faculty undergraduate college students, primarily faculty freshmen and faculty sophomores; 9% have been graduate college students and 4% recognized themselves as grownup/non-traditional college students.

Survey matters

Availability of the funds Gen Z college students want for school

We started the survey by asking a qualifying query, in order that we might be sure that many of the respondents have been planning to attend faculty within the coming faculty yr. We requested college students, “Will you be attending faculty in 2024-25?”

We then requested, “Do you have the funds for to cowl faculty prices for the 2024-25 faculty yr? Among the many college students who’re planning to attend faculty in 2024-25, simply 5% reported that that they had secured the funds wanted to pay for school within the coming faculty yr, whereas the overwhelming majority (95%) indicated that that they had not.

How Gen Z college students are planning to “fund their hole” to have the ability to afford faculty this yr

Our subsequent query was, “For those who don’t at the moment have the funds for to cowl faculty prices for 2024-25, which of the next are you doing to make up the distinction? Choose all that apply.”

Among the many college students who will attend faculty in 2024-25, the overwhelming majority chosen multiple reply, indicating that they’re taking a multi-pronged method to safe the extra funds wanted.

A few of these approaches are extra constructive:

• 100% are making use of for scholarships
• 59% are working at a summer time job
• 45% are working a number of facet hustles (meals supply driver, rideshare driver, dog-walker, babysitter, handyperson, freelance work, getting paid as an influencer, and many others.)
• 61% are searching for a part-time job they will work throughout the faculty yr
• 12% might be enrolling in group faculty somewhat than a 4-year college to avoid wasting prices

Whereas different approaches can have long-term hostile monetary affect on themselves and their households:

• 53% are taking out federal pupil loans
• 26% are taking out non-public pupil loans
• 38% are asking household or buddies to offer extra monetary assist

How way more cash Gen Z college students want to have the ability to pay for school this yr

Our remaining query was, “If you may be enrolled in faculty in 2024-25, roughly how a lot cash do you continue to have to provide you with to have the ability to pay for school this yr?”

Among the many college students who will attend faculty in 2024-25:

• Simply 2% stated they have already got sufficient funds
• 23% want $100 to $5,000
• 26% want $5,000 to $10,000
• 16% want $10,000 to $15,000
• 12% want $15,000 to $20,000
• 10% want $20,000 to $30,000
• 5% want $20,000 to $40,000
• 3% want $40,000 to $50,000
• 4% want greater than $50,000

Key takeaways

The outcomes of this survey proceed to stun. Simply 5% of respondents have secured the funds wanted to pay for school in 2024-25, even if faculty begins in August for many college students. Whereas most college students indicated that they’re making use of a number of approaches to acquire the funds wanted, the bulk included taking out federal and/or non-public pupil loans as a part of their answer. Their households will even be impacted, as greater than one-third (38%) predict that their household/buddies will present extra monetary assist to assist them obtain their dream of going to varsity.

Regardless of this unlucky information, college students proceed to persevere and are taking constructive steps to build up the funds wanted, which is able to assist them cut back their reliance on pupil loans and assist from household and buddies:

• All respondents are utilizing their very own earnings to assist pay for school – this consists of college students who’re working this summer time and/or who plan to work whereas they’re at school.
• All respondents are actively making use of for scholarships to earn cash for school.

How can Gen Z college students guarantee they will afford faculty in 2024-25 and past?

There are a variety of steps that college students can take to make sure they’ve an reasonably priced path to varsity:

• Prioritize making use of for scholarships with ScholarshipOwl. Apply for scholarships all summer time lengthy, and all through the varsity yr.
• Work part-time throughout the faculty yr and full-time throughout breaks. Save your earnings to make use of in your faculty training.
• Submit the FAFSA yearly for yearly that you just’ll be in faculty, starting in your senior yr of highschool, and persevering with to submit it yearly till you full your faculty training. The FAFSA opens on October 1st annually.
• If you obtain your monetary support presents, examine them and deal with selecting essentially the most reasonably priced faculty. In case your first-choice faculty supplied you a much less monetary support and scholarships than different colleges supplied, contact your most well-liked faculty to see in case you can negotiate your supply to at least one that’s extra reasonably priced for you.
• All the time contemplate beginning at a group faculty, which presents a very reasonably priced possibility – and don’t neglect that group faculties additionally supply federal and state grant support, and so they additionally supply scholarships. So even if you’re planning to attend group faculty, at all times submit your FAFSA and at all times apply for scholarships!

REMEMBER: Scholar loans ought to at all times be a last-resort possibility for paying for school. Give attention to debt-free sources that may allow you to graduate with out the burden of owing hundreds of {dollars} for school! Give attention to making use of for scholarships and jobs, NOT loans, so that you could graduate debt-free. There IS an reasonably priced path to varsity – for additional data, and to begin making use of for scholarships, go to www.scholarshipowl.com.