Survey Reveals Students Saving More to Pay for College
Students set their sight on college with effective college savings plans.
By Kathryn Knight Randolph
February 22, 2011
The close of February also draws Financial Aid Awareness Month to an end. How much have students learned this month?
According to a recent survey, How Youth Plan to Fund College, it seems that high school students are more aware than ever about the costs of college and more proactive about saving for college themselves.
Survey results revealed that 75% of students believe that paying for school is all or part of their responsibility, and 65% claim they’re using their own funds. These numbers are up from last year.
In 2010, 52% of surveyed students said they were covering a fourth of their college costs and 12% were paying more than half. This year, the survey revealed that 58% are covering a quarter of the costs and 18% are paying more than half.
Other student savings stats from the survey:
- 30% claimed that cost would definitely determine their education plans while 47% said cost could possibly alter their choices.
- 45% have already started saving: 19% have saved over $5,000, 43% have saved $1,000 – $5,000, and 35% have saved less than $1,000.
- 72% responded that they would definitely or possibly prefer money for college over tangible gifts.
While survey respondents have a very keen insight into savings, the same cannot be said for borrowing. The survey revealed that 66% of students will definitely or possibly borrow money for college and that 40% of respondents plan to borrow 25 – 50% of the total cost. However, only 20% of those planning to borrow have researched the total amount they will have to borrow.
The How Youth Plan to Fund College survey was circulated to 500 16- and 17-year-olds across the country. This is the second year the survey has been distributed.