More than half of the people in the United States that went to college took out a student loan in exchange for higher education. We can all agree that tuition prices are increasing, and that is to cover the inflation that happens every year.
We also need to remember that higher education is a business too. They need to make money. The average student year tuition can cost anywhere from 10 to 35 thousand dollars. That’s a lot of money if you’re taking on debt. You can go to this link for more info: https://www.cnbc.com/select/what-happens-when-student-loan-forbearance-ends/
Students are now looking for other methods that might help them cover this hefty sum. Compared to their parents, fewer kids are interested in going to university. The numbers are still high. Up to 80 percent of high schoolers say that they want to continue their education by going to either college or a trade school.
However, the researchers also asked the parents whether they anticipate their kids to continue their education. More than 95 percent of parents responded affirmatively. What this tells us is that there is a shift when it comes to the way young people perceive college. They are changing their mind about education based on the high fees and debt.
They cannot be blamed for that since that’s a major factor for anxiety in millennials. That is why they’re looking for alternatives that will help them gain the skills needed to function in the workforce.
Using different strategies
Most people that follow the traditional route go to high school and immediately sign up for college in order not to waste time. Well, Gen Z is changing their approach. They feel like online education is the future, and with conglomerates like Google offering cost-effective alternatives to college, they are planning to make the switch. Visit this link for more information.
Plus, this pandemic showed everyone that online learning is the way to go. That is what the future has in store. Universities adapted to this method, and companies are offering high schoolers programs that will get them hired immediately. Also, kids are planning to take gap years as soon as they finish high school to earn money before they go to college.
During this time, they could work two or three jobs to get as much money as they possibly can. Even during their studies, they want to keep on working. Most Gen Z Americans plan to pay at least half of their tuition. They are committed to saving and investing money into their future learning. That is because many families want to cover as much as they possibly can for their kids. Now, more than ever, parents are putting money aside to secure a better future for their children. More than 85 percent of families are doing it.
Grandparents are also pitching in, which streamlines the process. However, rather than completely relying on familial support and savings, the young generations want to try and pay for everything themselves.
Scholarships and work
The STEM fields have been blowing up for the past few decades. That’s why a lot of kids are trying to get good grades and are expecting to get scholarships and grants, which will help them cover the expenses of student loans for graduate school and help them live a better life. That is a big plus for education.
There’s also the option of working part-time and making passive income from social media. Documenting their lives on social media gives them additional income with very little time invested. There is also the rise of the gig economy, which means freelancing.
This is great because most students get extremely busy and focused during their exam season. As soon as they have free time, they could freelance for a couple of hours each day and earn a comfortable income. They are starting to recognize that action is needed to address their concerns about the future.
What does that say about loans?
Most people are definitely getting them. However, they are making smart choices and strategies when it comes to paying them off. This means that we can expect a financially literate workforce to enter the market in a couple of years.
That will boost the economy since most of them will have great credit scores if they keep doing what they have started. Of course, that takes discipline and commitment. Every generation is learning from their elders, and it seems like personal finance is going to be huge in the following years.