Gen Z, also known as the zombie generation, worries about a stagnating economy. In addition to inflation, the job market, growing student loan debt, housing insecurity — the list goes on.
According to a study by BestColleges, more than three-quarters of the U.S. college students who responded say that inflation is bad or very bad. Nearly half say that high-paying jobs are hard to find. And many respondents say they will consider a job outside their chosen field if it offers higher pay.
Unfortunately, this data is not surprising.
With so many economic factors to consider, Gen Z college students feel more financially insecure than ever. While there are some possible remedies for those who want to consider them, the uphill battle is undeniable.
Key factors that contribute to financial insecurity among Gen Z college students include:
These issues are enough to manage on their own. As Gen Z students continue their college journey, these issues also begin to impact academic performance and mental health.
Graduating with student loan debt can delay major life events, including getting married or saving for retirement.
Whether the college graduate had some student loan debt depends on the cumulative amount borrowed in federal and private student loans.
In addition, 82% of bachelor's degree recipients who had no student loan debt as of 2012 felt that college was worth the cost, compared with 70% of those with some student loan debt.
In 2021, an analysis based on the 2009 follow-up to the Beginning Postsecondary Students Longitudinal Study was conducted (see table above).
Among undergraduate students, college dropouts are almost four times more likely to default and represent almost three-quarters of the defaults.
Among students in bachelor's degree programs, college dropouts represent 97% of the defaults. Students who drop out of college have the debt but not the degree that can help them repay it.
College graduates with more debt are more likely to experience financial stress than those who do not have student loan debt.
Several steps can be taken by colleges and students to address financial insecurity while they are enrolled in college:
The list of worries for Gen Z college students is never-ending. From college costs to inflation, the job market, and the economy as a whole, they face a lot of uncertainty as they transition from college into the real world.
Gen Z has options to navigate these challenges, but their concerns are real and valid.
This story was produced by BestColleges and reviewed and distributed by Stacker Media.