The study found that 39 percent of Generation Z individuals prioritize advancing their education, while 46 percent believe that the cost of college does not justify the investment.
The study found that 39 percent of Generation Z individuals prioritize advancing their education, while 46 percent believe that the cost of college does not justify the investment.
Nearly half of Generation Z believes that college is not worth the cost, according to a recent survey conducted by YouGov and Business Insider.
The study, which included over 1,800 participants spanning five generations, highlighted that 39 percent of Generation Z individuals prioritize advancing their education, while 46 percent believe that the cost of college does not justify the investment, as reported by Erudera.com.
“It was just always something that was part of the plan. My parents went to college, so did my brother, all my extended family went, it was just completely normal to me. And it wasn’t really until I got to college that I realized it wasn’t what I wanted to do,” Sadie Shaw, 22, shared in an interview with Business Insider.
Doubts, disparities
The study also revealed that the skepticism surrounding the value of college education is reflected in the substantial student loan debt in the United States, surpassing $1.6 trillion, with nearly 44 million borrowers as of Nov. 1, 2023, according to Federal Student Aid.
Further analysis by the Federal Reserve Bank of St. Louis, specifically the Survey of Household Economics and Decision-making, found that certain subsets of Generation Z were less optimistic about the future payoff of college investment.
“Some Gen Zers were less likely to expect that the investment would pay off, including those who went to college but didn’t graduate, women, and Black and Hispanic Gen Zers. In these groups, less than half believed the lifetime financial benefits of college would outweigh the costs,” Ana Hernández Kent, a senior researcher at the Federal Reserve Bank of St. Louis, said.
“In these groups, less than half believed the lifetime financial benefits of college would outweigh the costs,” said.
More than half of Gen Zers currently in college shared the belief that college might not yield the expected returns. The skepticism was observed across various academic pursuits, with 60 percent of those in bachelor’s programs expressing doubt, along with nearly 40 percent pursuing an associate degree or certificate.
The survey also highlighted a gender disparity, as more men than women expressed skepticism about the benefits of college. Notably, nearly 20 percent of respondents who deemed higher education as an unreliable investment had dropped out of college.
In terms of ethnicity, the survey found that a significant number of Asian students held doubts about the payoff of college, followed by Black and Hispanic students.
Hernández Kent suggested that the negative perceptions of the financial benefits of college among younger generations may mirror trends observed in a 2013 survey involving younger millennials, indicating a persistent shift in attitudes towards higher education.
Financial struggles
In a recent survey by ScholarshipOwl, it was revealed that 92 percent of Gen Z students in the US are concerned about their ability to cover tuition costs for the fall semester.
The survey, involving over 9,300 high school and college students, indicated that many respondents plan to use a mix of funds for their college education, focusing on non-repayable sources such as federal and state grants, scholarships, and income from employment.
At least 47 percent of Gen Zers intend to secure part-time jobs on or near campus, while over one-third plan to earn money through gig work.
Additionally, 26 percent plan to seek extra financial support from their families, 12 percent expect their parents to take out loans on their behalf, and 4 percent consider not attending college in the upcoming academic year.
The survey also highlighted that 33 percent of students plan to use federal student loans, and 21 percent intend to take out private student loans.
The impact of the Supreme Court’s decision to strike down President Joe Biden’s student loan forgiveness plan was also cited, although recent Department of Education announcements suggested potential forgiveness of up to $39 billion in federal student loan debt through modifications to the income-driven repayment plan.
In a separate survey by Experian, a global information services company, 54 percent of Gen Zers and millennials express varying degrees of financial dependence on their families. Sixty-one percent of Gen Zers are more reliant on parental financial support compared to 47 percent of millennials.
The study, involving over 2,000 young adults, also revealed the prevalent financial challenges and feelings of dependency among the younger demographic. Notably, 66 percent of respondents admit feeling ashamed when seeking financial assistance from their parents.
