September 16, 2025
A recent study conducted by a prominent educational policy organization sheds light on the financial challenges that students encounter, particularly focusing on their country of origin and the duration of their families’ residency in the United States.
The findings emphasize that broad racial and ethnic classifications, such as Asian American and Hispanic or Latino, fail to capture the intricate racial, ethnic, and socioeconomic diversity within these groups and their unique experiences in higher education. According to Marián Vargas, the lead author of the study and assistant director of research, this analysis aims to provide a clearer understanding of the financial needs of these students.
For instance, the report highlights significant disparities among Latino students. It reveals that first-generation Cuban students face an alarming 95 percent of their financial needs unmet, while second-generation Cuban Americans with two foreign-born parents experience a slightly lower unmet need of 72 percent. Interestingly, this figure drops to 53 percent for those with one foreign-born parent and rises again to 78 percent for third-generation students.
In contrast, students of Mexican descent show minimal variation in unmet financial needs based on generational status. The unmet need decreases only marginally from 83 percent for first-generation students to 78 percent for third-generation Mexican Americans, indicating a more consistent financial challenge across generations.
Asian American students also exhibit varying levels of unmet financial need. While those of Chinese, Vietnamese, Japanese, and Filipino descent experience notable reductions in unmet needs as they progress through generations, third-generation Korean Americans still face an 81 percent unmet financial need, which is only five percentage points lower than that of first-generation immigrants.
Vargas suggests that several factors may contribute to these disparities in unmet financial needs, including societal obstacles, difficulties in navigating the financial aid landscape, and differing poverty levels among various populations. She hopes that this analysis will motivate college administrators to take proactive measures to support these students, such as investing in programs that offer first-dollar free college initiatives and enhancing awareness of available financial aid opportunities.