Gen Z Views: Student Loans & College Value | Varthana Insights

Gen Z’s Perspective on Student Loans and the Value of a College Degree

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Generation Z, born between the mid-1990s and early 2010s, is witnessing a rapidly evolving landscape when it comes to education and career choices. The issue of student loans and the perceived value of college degrees has become a focal point for discussions as they navigate through the complexities of higher education. In this report, we’ll take a look at the views of Gen Z regarding student loan payments and how attitudes toward college degrees are changing in India.

I) The Rising Cost of Education

One of the key factors influencing Gen Z’s perspective on higher education is the rising cost of education. Over the past decade, tuition fees, living expenses, and other associated costs have soared, making higher education increasingly unaffordable for many students and their families. This has led to a greater reliance on student loans to bridge the financial gap.

A) Student’s Loan as Necessity
Obtaining a student loan has become a requirement for pursuing higher education for many Gen Z individuals. It’s believed that getting a good education without a loan is next to impossible. This point of view is based on the conviction that obtaining a college degree is still a necessary condition for gaining a reliable job and a promising career.

B) Financial Burden
Gen Z, however, is particularly aware of the burden of college loan debt. They are really concerned about the possibility of graduating with a significant debt load. Financial stress becomes worse by high interest rates and the requirement for prompt repayment. This in turn affects how students view the value they anticipate getting from their college education.

II) Shifting Perceptions of College Degree Value

While the traditional view of a college degree as a ticket to a secure future remains prevalent among Gen Z, there is a notable shift in perceptions. Several factors contribute to this shift.

A) The Evolving Job Market
India’s job market is going through a substantial transformation. The freelance economy, remote employment prospects, and the demand for professions with a focus on skills are all growing in popularity among Gen Z. In light of this, some are starting to wonder if a college education still provides the most direct path to fulfilling employment.

B) Alternative Education Pathways
Alternative educational routes like online courses, career training, and certification programmes are becoming more and more well-liked. These programmes promise to help you get useful skills faster and at a cheaper cost than a standard degree. As Gen Z looks to enter the workforce sooner and with less debt, they are more open to investigating these options.

c) Value for Money
The value-for-money equation plays a crucial role in Gen Z’s perception of a college degree. Many students and their families may question whether the investment in higher education is justified by the returns in terms of employment opportunities and income potential.

Read More: Role of Skill Development in India’s Job Market Transformation

III) Balancing Aspirations with Financial Realities

The value of a college degree and how Gen Z views student loans represent a tricky balancing act between aspirations and financial reality.

A) Aspirations for a Better Future
Despite the concerns surrounding student loans, Gen Z continues to hold aspirations for a better future. They believe that a college degree can provide the knowledge, skills, and social capital necessary to pursue their dream careers and achieve upward mobility.

B) Practical Decision Making
However, Gen Z is also renowned for its practical approach to making decisions. Many students are diligently investigating the possible return on investment of the programs and institutions they have selected. Before deciding to pursue a college degree, they are thinking about things like employability, industry demand, and post-graduation pay possibilities.

C) The Role of Parents
Parents significantly influence how Generation Z views education. While they frequently encourage their children’s educational ambitions, they are also becoming more worried about the costs associated with school debt. Finding workable alternatives has become a more direct and prevalent theme in discussions about financing for higher education.

IV) The Way Forward: Solutions and Considerations

As Gen Z struggles with the challenges of student loans and the value of a college degree, several solutions and considerations emerge:

A) Financial Literacy
There is a growing need for enhanced financial literacy among Gen Z and their families. Understanding the complexity of student loans, interest rates, and repayment options can empower students to make informed decisions.

B) Diversification of Skills
Gen Z should explore diverse skills and knowledge, whether through conventional education or alternative routes. A more solid basis for their professions may come from a mix of academic degrees and practical abilities.

C) Employability Oriented Education
Institutions of higher learning might modify their curricula to emphasize employability and relevance to the workplace. The gap between education and the workforce can be closed through academic-industrial cooperation.

D) Government Initiatives
Government initiatives, such as scholarships, interest rate subsidies, and income-based repayment schemes, can alleviate the burden of student loans and promote higher education accessibility.

E) Career Guidance
Comprehensive career counseling services can help Gen Z students align their educational choices with their career goals and financial constraints.

Read More: Understanding the Importance of Vocational Training for Career Development


In navigating the complex terrain of student loans and the value of a college degree, Generation Z in India is confronting a dynamic and evolving educational landscape. While the traditional view of higher education as the ultimate pathway to success persists, it is being reevaluated in the context of changing job markets and alternative educational options.

The perspectives of Gen Z reflect a desire for both personal and financial fulfillment. They aspire to achieve their dreams but are mindful of the practicalities of student loans and the value they receive from their education. To address these challenges effectively, it is imperative for stakeholders, including educational institutions, policymakers, and families, to collaborate and innovate, ensuring that higher education remains a viable and valuable option for the next generation of Indian students.


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