High School Students Lean In to Shouldering the Cost of Higher Ed by Saving, Working and Living at Home, says College Savings Foundation

Survey findings from teens across country show continued determination to pay their way with strategy and sacrifice

WASHINGTON, April 24, 2025 /PRNewswire/ -- The current generation of high school students is defining itself as pragmatic and determined to fund much of their higher education costs, through a combination of successful saving, working full- or part-time, and paring expenses including living at home. These are among the key findings of the College Savings Foundation (CSF) 16^th Annual Youth Survey of 1,000 high school seniors, juniors, and sophomores across the country. https://collegesavingsfoundation.org/surveys/

The survey revealed continued momentum in how students are taking an intentional, holistic approach to achieving their higher education goals. Those goals span traditional four-year, mostly public, universities or colleges; community colleges; career and technical schools; and workforce training/apprenticeships and credentialing programs. To pay for this breadth of higher ed options and decrease debt reliance, this year's teens are:

• Saving and paying for higher ed at all-time high: A majority, 59%, of students are personally saving for their higher education costs.

• • 57% plan to pay for part or all of their higher education – with an impressive one-in-four planning to pay for all.
  • 79% of savers have already saved at least $1,000, with 27% saving more than $5,000 to date.

• Planning to work full- or part- time: 85% of respondents plan on working full- or part-time while attending higher ed classes, compared to 80% last year. 28% say that they will work full-time – another all-time high, up from 24% last year.
• Prepared to live at home to save money: 69% are expecting to live at home, the highest percentage in three years. The majority of those students are planning to go to public college and community college.
• Changing higher ed choices due to costs: 42% of students – up from 37% last year – are pivoting to community college, state schools, technical and career education, and workforce training and credentialing.
• "Gifts are welcome": Three quarters of students would rather receive money for education on special occasions than tangible gifts. Of those, 82% want parents to make it easy for family and friends by providing gift givers a link to contribute directly to their 529 education plan.

"As families confront the costs of higher education, we are impressed by the commitment young people in high school are making towards funding their choices, and particularly their awareness and use of 529 savings accounts to get to their goals," said Chris McGee, Chair of CSF, a leading nonprofit helping families save for a lifetime of education.

A total one-third of students said that either they or their parents were using 529s. However, a full 52% of the 1,000 parents responding to CSF's 18^th annual State of Higher Ed Savings survey last year said they were using 529s for their children. "This suggests that not all students are fully aware of their parents' 529 savings. Given how ambitious these young people are, and the fact that 85% of students talk to their parents about participating in their higher ed funding, we think there is a great opportunity for families to share more of their strategies and progress around the kitchen table," McGee added.

At the same time, students seem to be well informed about 529s, with one-quarter of savers saying that 529s were their primary way of saving. One-third of all teens were knowledgeable about 529 options, knowing that unused funds in a 529 account can be rolled into a Roth IRA for long-term savings.

Overall, students said that a majority (68%) of parents are saving for their higher ed, and of those, 68% of parents had saved more than $5,000 to date.  

Strategies to counter the specter of student debt

With 70% of teens planning on or possibly borrowing money, it is not surprising that 67% were also very concerned, somewhat concerned or concerned about paying back student loans. All students reinforced that to counteract these worries, they will focus on saving more money, working while attending school, or going to a state school or community college.

Students seem confident about their ability to secure a needs-based grant (40%), or an athletic grant (27%), although data indicates that students who actually receive athletic grants are in the very low single digits.

What high school students want in higher ed

What does the ideal higher education experience look like for today's high school students?

CSF has been asking teens that question for three years and the answers seem to be outlining a new hybrid kind of education, one that is moving towards a traditional college experience to create long-term friends and contacts (81%), a more valuable credential over time (79%), more access to clubs, sports and campus activities (79%), and a more traditional higher ed experience with numbers of hours and credits (71%).

At the same time, students still overwhelmingly want to get credit for actual work experience done in conjunction with the higher education institution (90%); work with schools that help place them, track their experience and provide information about job opportunities in their chosen careers (89%); and have classes that would allow them to take a test that may result in finishing requirements sooner and cost less (86%).

"As the landscape of higher education evolves, we are excited to be part of this generation's pursuit of the knowledge and skills that can set them up for success and lay the foundation for a fulfilling career," McGee added.

This year the largest cohort of high school students planned to go to public college (46%),  followed by community college (18%), private college (14%), Technical and Career Education (8%), workforce training and credentialing programs (4%), and the military (3%).

The CSF 16^th Annual Youth Survey was conducted by survey monkey with parental permission among more than 1,000 high school students across the country. 

CSF is a Washington, D.C.- based not-for-profit organization helping American families achieve their education savings goals for a lifetime.  www.collegesavingsfoundation.org

Media Contact:

Lynthia Romney, [email protected] 914-589-2140

SOURCE The College Savings Foundation