Gen Z and College Loan Debt: Insights and Solutions

In our recent Logica Future of Money Study, we uncovered insights about the personal financial landscape of Americans. The study included a special report on debt, where we found that approximately 63% of Americans are grappling with personal debt.

Our study has also been tracking the financially savvy Generation Z for many years, revealing their resourcefulness in money management and their savings mindset. While this generation has student loan debt—which is not surprising given their age—they are on a trajectory to have less debt than Millennials. They are taking the lessons they’ve learned from watching their parents, and living through economic upheavals, to proceed with more wisdom and caution to build a foundation for a better financial future. 


The majority of any debt that Gen Z does carry comes from these college loans, according to our Future of Money Study. The college loan debt burden, for all generations, has been at the forefront of the news cycle lately. “Is Rising Student Debt Harming the U.S. Economy?” from the Council on Foreign Relations says that in order to stay competitive economically this problem must be addressed, but relief and reforms are complicated. Loan forgiveness under the current administration in the United States has reached more than $138 billion—while offering reprieve for some, it is widely contested as many feel the whole debt-incurring system needs an overhaul. There are many reasons debt continues to become a worsening issue.


The article “The Student Loan Debt Crisis” discusses factors such as tuition inflation, increased demand for advanced degrees, changes in college loan policies, and the impact of ongoing economic events contributing to the growing burden. The total student loan debt surpasses $1.7 trillion in the United States. This hefty student loan burden hinders financial progress and  impedes milestones like home ownership and retirement savings. In our Future of Money Study, some Gen Zers report managing their debt by residing with family and friends to cut costs. They are also looking for financial advice on a variety of fronts from digital to personal to professional to help them manage their finances.

As we noted in our article about debt in The Financial Brand, Gen Zers have high expectations for digital tools and online platforms to help them work through their best paths to financial health. They rely on various sources, especially social media channels like YouTube and TikTok, for information. Financial brands must establish a strong presence on these platforms, using peer-to-peer marketing to deliver the financial education content Gen Z seeks. But they aren’t just looking online.


Gen Z relies on friends and family for financial advice in certain areas, while financial advisors play a crucial role in guiding this generation’s money decisions. We discuss all the avenues where Gen Z is looking for financial advice and support in “Advisors, Trust, and Gen Z Money Choices” in Advisorpedia, and also in our recent webinar, “Money Conversations with Gen Z.” 


To understand how to help people navigate debt and more about Gen Z money matters, get our Future of Money Study available through the Insights Kit


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