Generation Y is forging its way through life in a different way than previous generations. Generation Y, those between the ages of 16 and 25, will be less loyal to corporations, career tracks, and more likely to be entrepreneurs than other generations. However, in an ironic twist, what Generation Y wants most from life seems to also be their biggest obstacles, wealth and education.
Understanding who students are, their goals, motivations, and educational and financial skill-levels is vital to helping students find collegiate success. A report issued by the Pew Research Center, How Young People View Their Lives, Futures, and Politics, sheds some light on these subjects for the Generation Y population.
Goals and Challenges
The report found that the biggest goals for Generation Y are wealth and fame. Unfortunately, their greatest challenges are money, finances, and debt, followed by success in higher education.
This is especially visible when examining the number of freshman who do not complete their college educations. Nearly half of all freshman students do not complete college and a majority of those drop out before their second year, according to the National Center for Educational Statistics (NCES).
Generation Y loves to be in the limelight and to fit in with their peers, according to the Pew report. Certainly everyone seeks attention, but research is showing that Generation Y revels in it. This could be a result of growing up in front of parents' cameras and learning that anyone can be famous if they have a camera, a computer, and an Internet connection.
It is this insight that has some experts wondering if it is a lack of motivation, fear of not fitting in, or downright ignorance of basic life and financial management skills that is contributing to the enormous number of students who don't make it to their second year of college.
Lack of Motivation?
When they arrive at college, most freshmen are highly motivated according to a recently released report, National Freshman Attitudes, by Noel-Levitz. Out of the 97,626 freshman surveyed over the summer of 2006, more than 95 percent expressed a strong desire to complete college. The fact that almost half of all college freshmen will not complete their educations suggests that this attitude requires further examination.
Interestingly, the Noel-Levitz report found significant motivational differences between men and women. For every 100 women that receive a bachelor's degree, only 73 men will do likewise. Females are also more inclined to take meticulous notes in class, build stronger study habits, feel personal satisfaction when reading, and to be generally more motivated than men to finish college, according to the report.
However, in both instances, male and female freshman showed strong signs of motivation. The majority of freshman indicated that they would even welcome more campus involvement in college exam preparation, career guidance, and job placement assistance.
Content Is The Key
The incongruence between Gen Y's goals - wealth and fame - and their problems - money and education - could be significant factors contributing to the soaring higher education drop-out rate identified by NCES.
The Jump$tart Coalition, a nonprofit organization dedicated to improving the personal financial literacy of young adults, conducts a biannual survey to determine the current financial literacy of America's high school juniors and seniors. Their most recent findings show that despite an increase in financial literacy awareness nationwide, the majority of students are still "failing" the financial survey distributed by Jump$tart.
Spurred by the frustration from lack of significant financial literacy improvement among youth in the past nine years, Jump$tart examined whether these young adults were deficient in motivation. Their research showed that the problem lies more with the content of financial literacy courses than lack of student motivation. Based on responses from students, the research showed that less than 10 percent of the students surveyed lacked motivation.
Money Is An Issue
The Noel-Levitz report also points to financial strain as an issue for freshman. Nearly half of students attending two-year schools expect to work more than 20 hours a week. Even at four-year schools. a substantial number of students plan on working while attending school.
What Financial Aid Administrators Can Do
Financial aid administrators should find out if their school has a student retention plan. Noel-Levitz found that only 29 percent of schools actually have a student retention plan. The financial aid office should play a big part in a school's retention plan since financial issues tend to top the list of why students drop out.
"Institutions most successful in addressing their identified student concerns and retention have developed a comprehensive retention plan that unifies efforts across campus offices and personnel," said Noel-Levitz President Kevin Crockett.
Enhanced entrance counseling, which focuses on financial literacy, appropriate debt levels, and credit and loan counseling should be a part of a school's student retention plan. Helping students confront financial issues early in their college careers can help stem the need for students to work excessive hours at part-time jobs and deter future dropouts. As the report shows, motivation alone, without financial discipline, literacy, and know-how, cannot keep a student from dropping out.
By addressing these issues up front, preferably as part of a larger student retention plan, financial aid professionals can help improve the chances that students can overcome their greatest obstacles and achieve their educational goals.
By Justin Draeger
NASFAA Assistant Director for Communications
Posted 01/17/07 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.
