Gen Z-ero Debt

In year 2017 15,901 undergraduate students were enrolled at Oakland University in the fall. Of these students, 70.1 percent of them were in the age bracket of 17-22 years old. Why is this important? A study shows that students of the “Gen Z” generation (born between 1997-2012) are smarter about their money and their life goals after graduation than previous generations were. Which, as it turns out, they would have to be at Oakland University. The university has seen a steady decrease in the amount of state aid each student is eligible to receive. In year 2008 the rate was 35% and in year 2015 it had dropped down to nearly half of that, going to 16%, and even lower in recent years. There are specific reasons why certain colleges and universities are unable to provide as much aid as is expected when the student applies for school, which we will not cover here.

 

The aim of this post is to examine the effects of this falling aid on the minds of the Gen Z and how they have learned to financially adapt to the current economic climate as to not end up like their parents and older siblings, owing tons of money for student loans. Gen Z-ers have watched their families and predecessors struggle with student debt and are beginning to save money at an earlier age, as early as high school in most cases (NSHSS). The impact of the economy has made the Gen-Z students cautious and/or anxious about possible financial hardship. The high school students learn good habits because the school plus work combo plays out at the collegiate level as well. Oakland University students spend 35% of their time at an off-campus job.

Students of the Gen Z generation are also aiming higher for desired incomes as they choose college majors and degree paths that specialize in jobs that are in demand. They not only have high expectations for a future career, but are aware that they will be responsible for helping to pay their own way through college, some of them are even using savings accounts to contribute.