Gen Z students are actively seeking various sources to fund their college journey, with a strong focus on non-repayable options such as federal and state grants, scholarships, and income from employment.
Gen Z students are actively seeking various sources to fund their college journey, with a strong focus on non-repayable options such as federal and state grants, scholarships, and income from employment.
Ninety-two of Gen Z students are anxious about their ability to cover college tuition costs for the upcoming fall semester, according to a recent survey conducted by online platform ScholarshipOwl.
The survey, which gathered responses from over 9,300 high school and college students, revealed a growing concern among Gen Z individuals regarding their financial capacity to pursue higher education, as reported by Erudera.
ScholarshipOwl’s findings indicated that these students are actively seeking various sources to fund their college journey, with a strong focus on non-repayable options such as federal and state grants, scholarships and income from employment.
Diverse strategies
Notable trends among Gen Z students include nearly half or 47 percent planning to secure part-time jobs, over one-third seeking income through gig work, 26 percent considering family financial assistance, 12 percent expecting their parents to take out loans on their behalf, and 4 percent pondering college non-attendance due to financial concerns.
Regarding financing options, 33 percent plan to use federal student loans, while 21 percent are exploring private student loans.
Recent developments in federal student loan forgiveness have created uncertainties, following the Supreme Court’s decision to strike down United States President Joe Biden’s initial plan to forgive $441 billion in student debt. Nevertheless, the Department of Education has announced potential forgiveness of up to $39 billion in federal student loan debt, primarily due to changes in the income-driven repayment plan.
Additional insights from Experian, a global information services company, show that 54 percent of Gen Zers and millennials admit to being somewhat or very financially dependent on their families.
Meanwhile, 61 percent of Gen Z individuals rely on their parents’ financial support, whereas 47 percent of millennials do the same. The study, which involved more than 2,000 young adults, also revealed that a majority of these adults or 66 percent feel a sense of shame when having to request financial assistance from their parents.
