In July 2024, scholarship owl We are continuing to investigate whether Generation Z, who will be attending college this year, will have the necessary funds to attend college in the 2024-25 academic year. Even though the deadline to claim fall tuition is August for most college students, we found that only 5% of students have secured the funds they need to pay for this year’s college tuition . While this news is very disappointing, it is not surprising given the continuing rise in the cost of college and the ongoing issue of inflation. actual, education data initiative Over the past 20 years, public universities report a 179% increase in tuition and fees.

Our research also shows that even more students struggle to get into college than students. Last month’s surveyThey found that only 10% of students have the money they need to pay for college this year.

However, our research also yields positive news. Gen Z is resilient and smart, as most respondents are developing a multifaceted strategy to raise the funds they need to attend college this year.

Who participated in the survey?

In July 2024, ScholarshipOwl surveyed high school and college students on the ScholarshipOwl scholarship platform to learn more about financial readiness for college. A total of 13,345 students responded.

Of the respondents, 64% were female, 35% were male, and 1% identified themselves as a different gender identity or did not wish to answer the question. Almost half (42%) were white, 29% were black, 17% were Hispanic/Latino, 6% were Asian/Pacific Islander, 2% were American Indian/Native American, and 5% selected “other.” Or they said they didn’t want to answer. That question.

More than a quarter (27%) of respondents were high school students; Almost two-thirds (60%) were undergraduate students, primarily first- and second-year college students. 9% were graduate students and 4% identified themselves as adult/nontraditional students.

Research theme

Availability of funding for college for Gen Z students

We began our survey by asking closed-ended questions to ensure that most respondents were planning to attend college next year. We asked students, “Will you attend college in 2024-2025?”

We then asked, “Do you have enough money to cover your college costs for the 2024-25 academic year?” Only 5% of students planning to attend university in 2024-2025 say they have the necessary funds to attend university next academic year, while an overwhelming majority (95%) ) answered that they had not secured it.

How Gen Z students plan to “gap fund” for college this year

The next question is, “If you currently don’t have enough money to cover your college costs in 2024-2025, which of the following are you doing to make up the difference?” Please select all that apply. ”

Among students planning to attend university in 2024-2025, the majority selected more than one answer, indicating that they are taking a multi-pronged approach to securing the additional funding they need.

Some of these approaches are more aggressive.

• 100% apply for scholarships
• 59% have summer jobs
• 45% have one or more side jobs (e.g., food delivery driver, rideshare driver, dog walker, babysitter, handyman, freelance work, paid influencer work, etc.).
• 61% are looking for part-time work during the school year.
• 12% plan to attend a community college rather than a four-year university to save money

Other approaches can have negative long-term financial consequences for you and your family.

• 53% have federal student loans
• 26% have private student loans
• 38% ask family and friends for additional financial help

How much more will Gen Z students need to pay for college this year?

Our final question is, “If you plan to attend college in 2024-2025, approximately how much money do you need to have available to pay for college this year?” It was.

The following students are scheduled to attend the university in 2024-2025.

• Only 2% say they already have enough money
• 23% require $100 to $5,000
• 26% require $5,000 to $10,000
• 16% require $10,000 to $15,000
• 12% requires $15,000 to $20,000
• 10% requires $20,000 to $30,000
• 5% requires $20,000 to $40,000
• 3% requires $40,000 to $50,000
• 4% requires $50,000 or more

Important points

The findings continue to be surprising. Even though most students start school in August, only 5% of respondents have secured the funds needed to attend university in 2024-2025. Most students said they were applying multiple approaches to raising the needed funds, but the majority included utilizing federal and/or private student loans as part of the solution. I’m here. Families will also be affected. More than a third (38%) expect their family and friends to provide additional financial support to help them realize their dreams of attending university.

Despite this disappointing news, students are persevering and taking positive steps to save up the funds they need, which will reduce their reliance on student loans and support from family and friends.

• All respondents use their income to pay for college tuition. This includes students who are working this summer or who plan to work while in school.
• All respondents actively apply for scholarships to earn money to attend college.

How can we ensure that Gen Z students attend college in 2024-2025 and beyond?

There are several steps students can take to ensure their admission to college.

• Prioritize scholarship applications scholarship owl. Apply for scholarships throughout the summer and throughout the academic year.
• Work part-time during the school year and full-time during breaks. Save the money you earn to go to university.
• File the FAFSA annually from your senior year of high school for every year of college, and continue to file annually until you complete your college education. The FAFSA opens on October 1st of each year.
• Once you receive scholarship offers, compare them and focus on choosing the most affordable university. If your first choice school offers less financial aid or scholarships than others, contact your school of choice to negotiate an offer to a more affordable school.
• Always consider starting with a community college that offers truly affordable options. Don’t forget that community colleges also offer federal and state grant aid and scholarships. So, even if you plan to attend community college, be sure to submit the FAFSA and apply for scholarships.

Remember: Student loans should be your last resort to pay for college. Focus on debt-free funding sources so you can graduate without the burden of paying thousands of dollars for college. Focus on applying for scholarships and jobs instead of loans so you can graduate debt-free. There is an affordable path to college – for more information and to start applying for a scholarship, visit: www.scholarshipowl.com.