In Trellis’ 2023 Student Financial Wellness Survey (SFWS), 38 percent of respondents identified as first-generation students (n=19,634), comprising 41 percent of respondents at two-year institutions and 35 percent of those at four-year institutions. First-generation students can face unique challenges while navigating the higher education landscape. This blog highlights key areas of their experience.
Paying for college
Sixty-eight percent of first-generation students worried about paying for school, and nearly a quarter (24 percent) weren’t sure how they would pay for their next semester. While first-generation students are more likely to receive Pell or other grants compared to their non-first-generation peers (66 percent vs. 48 percent), they are also more likely to take out loans (40 percent vs. 33 percent) and/or use credit cards to pay for college (35 percent vs. 28 percent).
Overall, first-generation students receive less financial and logistical support from their parents as they navigate their education. Just 34 percent reported receiving support from parents or family to pay for college, compared to 48 percent of non-first-generation students. Nearly half (46 percent) of non-first-generation students had help from their parents when completing the FAFSA, only 21 percent of first-generation students received the same level of assistance. Almost a quarter of first-generation students (23 percent) indicated they didn’t know where to find advice on making financial decisions.
Basic needs
First-generation students face higher rates of basic needs insecurity. The SFWS tracks indicators of food insecurity, housing insecurity, and homelessness; in the 2023 implementation, 68 percent of first-generation students were identified as experiencing at least one form of basic needs insecurity, with 13 percent experiencing all three.
This data speaks to the experience of first-generation students and should inform our perspective on basic needs insecurity among undergraduates. First-generation students make up a substantial portion—43 percent—of those with basic needs insecurity. Nearly half (47 percent) of all respondents who experienced homelessness identified as first-generation students.
Financial priorities
First-generation students often juggle multiple financial obligations, including providing for their families. Fifty-seven percent agreed or strongly agreed that it was important for them to support their family financially while in college, compared to 40 percent of non-first-generation students.
For over a quarter of first-generation students (28 percent), supporting their family includes providing for a child. However, first-generation students also reported supporting their spouse (16 percent), their parents (20 percent), or other family members (14 percent) at higher rates than their non-first-generation peers.
Perspectives on college
First-generation students reported financial insecurity at higher rates than their non-first-generation peers. Eighty percent of first-generation respondents experienced financial challenges while in school, compared to 67 percent of their non-first-generation peers.
However, despite facing greater financial challenges, first-generation students were just as likely to agree that the cost of college is a good investment in their financial future (74 percent) compared to their non-first-generation peers (72 percent). Furthermore, first-generation students were more likely to recommend their school to a friend or family member; under the Net Promoter Score* scale, 45 percent of first-generation students were Promoters of their institution, compared to 39 percent of non-first-generation students.
May Helena Plumb is a Research Analyst at Trellis Strategies, where she specializes in telling students’ stories through qualitative research. She holds an M.A. and a Ph.D. in Linguistics from The University of Texas at Austin.
*To better understand how students perceive their school, the SFWS includes a customer satisfaction rating (Net Promoter Score or NPS). NPS categorizes respondents into promoters (scoring 9-10), passives (scoring 7-8), and detractors (scoring 0-6), with the formula %Promoters – %Detractors = NPS. A positive NPS (>0) is typically indicative of positive feedback and sentiment. Among first-generation students, institutions participating in the 2023 SFWS received an average NPS of 24.02, compared to 17.11 among non-first-generation students.