Students are Saving More for College Instead of Depending on Loans
July 3, 2015
According to Tim Grant of the Pittsburgh Post-Gazette, a greater number of high school students are realizing that preparing for college means saving more, borrowing less, and taking on part time jobs to help pay for it.
The Washington, D.C.-based College Savings Foundation found in its sixth annual “How Youth Plan to Fund College” survey of high school students that the next generation is taking college savings seriously. More of them are saving (51 percent vs. 44 percent last year) and 83 percent have saved at least $1,000 vs. 67 percent last year.
Also, fewer high school students want to pay for college with student debt: 55 percent intend to borrow, down from 72 percent a year ago. As in previous years, the survey of 500 high school seniors, juniors and sophomores in April showed the vast majority — 82 percent — believe it is their responsibility to pay for at least part of their higher education.
The difference this year is 71 percent of those students plan to pay for more than 25 percent of college costs, compared to 53 percent last year.
“We are very encouraged to see that high school students are taking financing of higher education seriously and have already shown themselves to be active planners and savers,” said Mary Morris, chair of the College Savings Foundation and CEO of the Virginia College Savings Plan in Richmond, Va. “Growing up in the aftermath of the recession has had a huge impact on their attitudes toward debt and savings. They are more keenly aware of the impact of student loan debt on their financial futures.”