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Are More Gen Z College Freshmen Leaving School and Moving Back Home?

Most fall 2023 college freshmen returned for spring. Surveys identify cost and flexibility pressures among broader groups, but do not show how many freshmen moved back in with parents.
From TheFinanceBase Team4 min to read
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Available national data do not show that more Gen Z freshmen are quitting college early and moving back in with their parents. They do show that some students leave enrollment after their first term, while surveys of broader groups of students and adults who stopped out point to cost, work and scheduling pressures. None of the cited sources tracks whether those freshmen returned to a parental home.

What the freshman enrollment numbers show

The National Student Clearinghouse Research Center reported that more than 86% of students who began college in fall 2023 were enrolled again in the spring. By that spring, 13.6% were no longer enrolled and 2.6% had transferred institutions, according to its June 26, 2025 report.

Those outcomes need to be kept separate. “No longer enrolled” means a student was not found enrolled the following spring; it does not establish that the student permanently dropped out. A transfer is a move to another institution, not a dropout. The report’s second-fall persistence rate for the fall 2023 cohort was 77.6%. Persistence counts enrollment at any institution; retention refers to remaining at the institution where the student started.

The figures describe a cohort, not a trend proving that more Gen Z freshmen are leaving school or moving home. Nor do they identify students’ living arrangements. The National Student Clearinghouse’s count of 43.1 million people with some college and no credential at the start of academic year 2023–24 covers many ages and stages, not just recent freshmen.

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Why do students leave college?

Cost is a prominent concern in surveys, but the findings describe different populations and cannot be treated as specific explanations for Gen Z freshmen’s decisions.

Adults who had stopped out

In a Gallup survey conducted October 9–November 16, 2023, 87% of adults who had stopped out without earning a credential said cost was a very or moderately important reason they were not currently enrolled. Work conflicts were cited by 81%, total time to completion by 73%, and lack of remote learning options by 70%. Gallup published the findings in its June 18, 2024 report.

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The study surveyed 14,032 current and prospective students through an opt-in online panel. Its stopout findings cover people across postsecondary pathways, including certificate, associate and bachelor’s programs; they do not isolate first-year students or Gen Z freshmen. These are respondents’ reported reasons, not proof that any one factor caused someone to leave.

Undergraduates who were at risk of not completing

An Ipsos poll for Sallie Mae found that 24% of surveyed current undergraduates met its definition of “at risk”: they had seriously considered leaving or were at risk of dismissal. Among those at-risk respondents, 53% reported difficulty meeting tuition costs and 50% difficulty meeting additional expenses such as textbooks, living costs or food. The poll also identified motivation and mental health as concerns.

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The online poll included 1,029 current students and 427 non-completers ages 18–30, and was fielded June 2–26, 2023. It was a non-probability sample drawn from Generation Lab student and general youth panels, not a nationally representative estimate. Ipsos and Sallie Mae published the findings in 2024: Ipsos report and Sallie Mae report.

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Does moving back in with parents explain the enrollment figures?

No cited freshman persistence or stopout survey connects leaving college with returning to a parent’s home. A student might move home to reduce expenses, but the figures above do not measure that choice or establish how common it is among freshmen.

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Census Bureau analysis offers broader context about young adults, not a measure of college withdrawals. Its August 5, 2025 report says the share of 25- to 34-year-olds who had reached four traditionally cited milestones—moving out, working, marrying and having children—fell from 45% in 1975 to less than one quarter nearly 50 years later. In 2024, about 28% had reached the economic milestones of living independently and participating in the labor force without being married or having children. These population patterns do not tell us whether freshman leavers moved back home.

If you are considering leaving school, check these consequences first

A pause, transfer or withdrawal can have different academic and financial effects. Before deciding, contact the relevant school offices and ask for the rules that apply to your enrollment, aid and housing.

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  1. Ask about deadlines and refunds. Confirm the withdrawal date, any refund schedule and whether dropping individual classes differs from withdrawing for the term.
  2. Check financial-aid consequences. Ask the financial-aid office how withdrawal or a leave affects current aid, future eligibility and any funds you may have to repay. Rules depend on your circumstances and applicable aid requirements.
  3. Confirm housing obligations. Review campus housing and meal-plan contracts, including cancellation deadlines and charges, before making plans to move.
  4. Get the return-to-school terms in writing. Ask whether you can take an approved leave, how readmission works, which credits will count after a transfer, and whether a part-time or remote schedule is available.
  5. Compare the practical options. Put total cost and aid, work-schedule fit, time to credential, study format, transfer-credit rules and available academic, financial-aid or mental-health support side by side.

These are questions for the specific institution; there is no single policy that applies to every college. If money is the pressure point, contact the financial-aid office before withdrawing so you can understand available options and the consequences of each.

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