Yahoo Finance Gen Z Math: How To Know If Your College Grant or Scholarship Is Enough for Fall Tuition
The impact of soaring college tuition costs was laid out in stark detail by a new survey looking at Gen Z students’ level of preparedness for college costs for the 2024-2025 school year.
The ScholarshipOwl survey found that 90% of Gen Zers don’t have enough money to pay tuition and other expenses in full. Because the fall tuition bill is due in August, many students will need to apply for student loans or other financial help.
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More than half of Gen Zers (52%) plan to use federal grants to help pay for college, according to the survey, which polled 9,097 high school and college students on the ScholarshipOwl scholarship platform. Here are some of the other payment methods cited by respondents:
Own income or savings: 55%
External scholarships received through ScholarshipOwl or other sources: 45%
University grants/scholarships offered in financial aid awards: 41%
Federal student loans: 40%
State grants/scholarships offered in financial aid awards: 35%
Financial support from family: 32%
Private loans: 16%
Federal work-study offered in financial aid awards: 12%
Another 6% of respondents said they would not attend college in the fall.
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Although there are wide variations in tuition costs based on the type of school, its location and where you live, averages provide a good basis for comparison. According to research from U.S. News, the average cost of tuition and fees for the 2023-2024 school year was $42,162 at private colleges, $23,630 for out-of-state students at public universities and $10,662 for in-state residents at public schools.
Obviously, you can save a lot of money by attending a public school in the state where you reside. But even those comparatively low costs are out of reach to many Gen Zers, which is why such a large percentage rely on financial help.
One question posed by the ScholarshipOwl survey was how well prepared Gen Zers are to fully pay for college in 2024-25. Here’s a breakdown of the answers:
4% have enough funds to pay
24% need another $5,000
22% need another $10,000
13% need another $15,000
11% need another $20,000
20% need more than $20,000
As U.S. News noted, determining a specific cost isn’t always easy because many families don’t pay the full price once financial aid and institutional grants are factored into the bill.
To come up with a number, experts advise families to fill out the net price calculator available on each college’s website. All colleges that participate in Title IV federal student aid programs are required to post a net price calculator, according to the National Center for Education Statistics.
The calculator should give you an estimated net price to attend the school based on what similar students paid in previous years. That net price will then let you know whether your grant or scholarship money is enough to pay for fall tuition.
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This article originally appeared on GOBankingRates.com: Gen Z Math: How To Know If Your College Grant or Scholarship Is Enough for Fall Tuition
