Only 4% of Gen Z students are fully funded for the upcoming academic year, according to a survey by ScholarshipOwl.
90% of college-bound Gen Z students don't know how they'll fully pay for school, with many needing between $5,000 to $25,000 more to cover costs.
Financial uncertainty is a leading cause of college dropouts, cited by 19% of students in an Ellucian survey.
Factors contributing to the funding gap include:
- Delayed and problematic rollout of the 2024-25 FAFSA
- Rising college costs outpacing inflation and wage growth
- High student loan interest rates
Recommendations for students to fill the funding gap:
- Complete the FAFSA
- Consider alternative educational paths (e.g., community college, in-state schools)
- Apply for scholarships year-round
- Get a job
- Contact the school's financial aid office for additional support
- Apply for loans as a last resort, prioritizing federal subsidized loans
For parents considering helping with costs, federal parent PLUS loans and private loans are options, with private loans potentially offering lower interest rates for those with excellent credit.
The article emphasizes the importance of being an educated consumer when choosing and paying for college.