Fall tuition bills for the upcoming academic year are arriving in mailboxes this month, but only 4% of Gen Z students say they’re fully funded for the entire school year, data shows.

As of June, 90% of college-bound Gen Z students said they don’t yet know how they’ll fully pay for school, according to a poll of 9,097 students surveyed by the application site ScholarshipOwl. Gen Z was born between 1997 and 2012 and includes the high school class of 2024. A fifth said they still needed more than $20,000 to meet the year’s tuition.

Some students will indeed have enough saved to pay that first tuition bill landing in their mailboxes now, but not knowing how to pay for the rest of the year can be stressful and wreak havoc on their future college plans.

If you find during the year, you can’t scrounge up the rest of the money, it’s “that much harder to potentially have to change direction in (the) middle of (the) school year,” said ScholarshipOwl financial expert Jennifer Finetti.

Of the 1,500 college students polled by education software firm Ellucian who dropped out, 19% cited financial uncertainty as the leading cause. The survey was taken between Feb. 26 and March 1.

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How much do students need to pay for the full 2024-25 year?

Among the 90% of students who don’t have all the funds available to pay for college in the coming school year, ScholarshipOwl said:

◾ 24% need another $5,000.

◾ 22% need another $10,000.

◾ 13% need another $15,000.

◾ 11% need another $20,000.

◾ 20% need another $25,000.

Only about 4% said they’re fully funded for the year, and roughly 7% said they weren't attending college this year (numbers are rounded).

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Why do so many families still have a funding gap?

The delayed and difficult rollout of the 2024-25 Free Application for Federal Student Aid (FAFSA), inflation and high interest rates all contributed to the tuition shortfall, experts said.

◾ A pared-down FAFSA didn’t launch until the very end of 2023, later than the usual Oct. 1 release, which pushed back application completion, processing and awarding of financial aid. Then, a string of technical issues and incorrect calculations caused further delays, giving students a “much smaller window to make an informed college choice,” Finetti said.

Since FAFSA was messy, many people delayed or skipped completing FAFSA. As of June 30, the number of high school graduates who completed the student aid application was down 11.6% from a year ago, said Jack Wallace, director of governmental relations at student loan refinancer Yrefy.

◾ College costs have risen exponentially over the years, outpacing overall inflation and wages, making college generally less affordable, Finetti said. Since 1998, the cost of a college education has grown by 188%, a rate faster than practically all goods and services and inflation-adjusted hourly wages, education platform Research.com said. Wages have only increased 26%, it said.

◾ Student loan interest rates are at the highest levels in more than 15 years, making families think twice about borrowing.

What can students do to fill the gap?

Steps to take, experts say, include:

◾ Complete FAFSA, if you haven’t already. This should always be your first step because nearly all federal government grants, and scholarships as well as state and institutional aid are based on that information.

◾ Consider alternative paths: Save money by attending a less expensive community college and then transferring to a four-year university or see if you can launch your career with a certificate or apprentice program or associate’s degree instead. Or attend an in-state public school, where tuition is usually less than at a private school. Focus on “colleges that are a financial fit as well as academic fit,” Finetti said. “Choose the best financial fit because if you have to take out a lot of student loans to pay, it may not be worthwhile.”

◾ Constantly apply for scholarships. Apply for scholarships year-round. “People assume they’re only available at certain times, but that’s not true,” Finetti said. January through May have the most opportunities from schools, but private scholarships are listed throughout the year. She recommends applying to at least three each week to maximize your chances. Even rising high school juniors should start applying now, experts say.

◾ Get a job. A full-time job during the summer and school breaks and a part-time job during the school year can earn you extra cash.

◾ Call the school’s financial aid office. If you need a little boost in your financial aid to attend your dream school, call the financial aid office and ask for it. “Most people don’t do that, but they should because they can do that,” Wallace said. “All they can say is no, but what if you can get more?”

◾ Apply for a loan. This should be a last resort because of the interest and years it could take to pay off tens of thousands of dollars, Finetti said. But if you must, aim for government-subsidized loans first because they offer the best terms. Then go to federal unsubsidized loans.

If parents want to help, they might look at the federal parent PLUS loan, but this year because interest rates are so high, Wallace said consider a private loan if you have excellent credit. The interest rate on a federal parent PLUS loan is 9.08% plus a 4.228% fee. If you have excellent credit, you might be able to get a private loan at nearly half that rate, he said.

“My word of wisdom is more important than ever before, which is you’ve got to be educated consumers when picking a college and paying for college,” Wallace said.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.