Students Relying More on Scholarships, Less on Savings

Although 25% of teens said their parents have a 529 College Savings Plan in place for them, the majority of teens (66%) and adults (54%) has never heard of such a plan. 

A TD Ameritrade survey found that 60% of today’s teens expect to pay for at least part of college through scholarships or grants, compared to 37% of adults who relied on the same when they went to college. Teens are also relying less on savings (20%) to foot the bill.

“A tough economy impacts everyone – not just those who are nearing retirement, but those who are just starting out as well,” said Lule Demmissie, managing director of investment products and retirement at TD Ameritrade. “Faced with rising tuition costs and potentially less means, getting a head start on saving for college has never been more important.”

The results are based on a telephone survey of 691 adults, ages 20 to 59, along with 304 teenagers age 14-19, conducted from May 19-23, 2011.