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In June 2024, scholarship owl conducted a study to learn more about how prepared Gen Z students are to pay for college for the 2024-25 academic year. We were pleased to see that most students who attend college rely on multiple sources of funding to pay for college. However, despite these multiple sources, 90% of respondents still report that they do not have enough money to pay for college in 2024-2025. Unfortunately, with fall tuition reduced in August, the majority of students will be relying on student loans to make up the difference. Many students may reconsider their current college plans and look for other options.
Who participated in the survey?
In June 2024, ScholarshipOwl surveyed high school and college students on the ScholarshipOwl scholarship platform to learn more about financial readiness for college. A total of 9,097 students responded.
Of the respondents, 64% were female, 35% were male, and 1% identified themselves as other. Nearly half (42%) identified as white, 29% as black, 17% as Hispanic/Latino, 6% as Asian/Pacific Islander, and 5% as other.
Almost one-third (32%) of respondents were high school students; More than half (55%) were undergraduate students, primarily first- and second-year college students. 9% were graduate students and 4% identified themselves as adult/nontraditional students.
survey questions
Topic 1 – Will you attend college in 2024-25?
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?”
Topic 2 – How do Gen Z students plan to pay for college?
The next question was, “Which of the following sources of funding do you plan to use to pay for college tuition in 2024-2025?” Please select all that apply. ”
- 52% plan to take advantage of federal grants offered through financial aid benefits
- 35% will utilize state grants/scholarships offered in financial aid awards
- 41% plan to take advantage of college grants/scholarships offered through financial aid awards
- 45% plan to use external scholarships received through ScholarshipOwl or other sources
- 12% will take advantage of federal work-study funding provided by financial aid grants.
- 55% plan to use their income from work or savings
- 32% plan to use financial support from family
- 40% plan to take out federal student loans
- 16% plan to use private loans
- 6% say they will not attend college in 2024-2025
Topic 3 – Availability of University Funds
We then asked, “How prepared are you financially to pay for college in 2024-2025?”
- 4% said they already had enough money to pay for college in 2024-2025.
- 24% say they will need to come up with an additional $5,000 to pay for college in full in 2024-2025
- 22% said they would need to come up with an additional $10,000 to fully pay for college in 2024-2025
- 13% said they would need to come up with an additional $15,000 to fully pay for college in 2024-2025.
- 11% said they would need to come up with an additional $20,000 to fully pay for college in 2024-2025.
- 20% said they would need to have $20,000 or more to pay for college in 2024-2025.
- 6% say they will not attend college in 2024-2025
Important points
The results of this study were eye-opening. Only 10% of respondents will have the funds needed to pay for college in 2024-2025, but should be prepared to pay fall tuition in August. Given this, it is likely that the majority of these students will need to rely on student loans to make up for the funding gap and/or will need to consider alternative college plans, such as starting at a community college. . , or take a gap year or more to work and save for education. Many of these students may be counting on their families to be able to provide additional financial support.
Despite this bleak picture, some positives emerge from this study.
- Most students understand that they need access to multiple financial sources to pay for college.
- Well over half of respondents believe they use grants and scholarships to help pay for college. These are sources of funds that do not need to be repaid. Additionally, more than half plan to use income from work or savings to pay for college.
- All respondents are actively engaged in seeking private external scholarships through the ScholarshipOwl platform. Therefore, these students understand that they need to participate in the process of finding financial sources to pay for their education.
How can students ensure they get into university in 2024-25 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.
