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Next Step Magazine’s Annual Parent Poll Finds Most Teens

Will Carry Substantial College Financial Burden on Their Own
- Importance of Four-Year Degree has Some Parents Taking on
Loans, Second Jobs or Heading Back to Work to Help Out -

ROCHESTER, NEW YORK, February 5, 2007 – Next Step Magazine today announced
the results of its annual Parent Poll, finding that while nearly all parents surveyed, 93.9%,
responded that it is extremely or very important that their child obtain a four-year college
degree, only 12.1 % have saved more than $25,000 toward their child’s education. In
fact, the majority of parents, 52.4%, have saved less than $5,000. With costs for four
years at an in-state public college averaging more than $51,000 and four years at a private
college now topping $121,000 (College Board’s Trends in College Pricing 2006) the poll
underscores the enormous financial responsibilities teens will face as they head off to
college.

Next Step Magazine is a college, career and life-planning magazine for high school
students and their parents distributed in more than 20,500 high schools across the
country. (www.nextSTEPmag.com)

While their savings are low, parents say they will find other ways to pay the tuition bills:
• 24.4% would take out a home equity loan
• 22.7% would take on a second job
• 15.1% will take out loans
• 14.4% would go back to work (if currently stay at home)

In addition to financial help:

• 60.1% will encourage their child to attend a state university to save money
• 37.0% would be willing to let their child live at home while attending a local
college to save money

“Seventy-three percent of parents expect their child to take out college loans, requiring
their child make adult financial decisions at an early age,” said Next Step Magazine
founder and publisher, David Mammano. “Teens need to learn how and where to spend
their money so they do not begin the next phase of life already burdened with substantial
debt, making it difficult for them to purchase homes, contribute to 401Ks and save for
their futures.”
Delivering the Bad News
With so few parents saving for college, the poll looked at when or if parents spoke to
their child about their college savings/financial plan, in order give their child a chance to
start saving.
• 24.6%, spoke to them at age 14, giving their child years to start saving.
• 26.9% waited until their child’s junior/senior year of high school (ages 17 and 18)
giving them little time to put money away.
• 29.0% have not yet discussed the issue.

How their Own College Education was Financed

Parents were also polled about their own college funding. Interestingly, of those whose
parents paid 100% of their college bills, only one-third, 35%, are willing to fully fund
their child’s education. Of those who had to pay 100% of their way through college, 79%
expect their children to do the same and take out loans.

Comparisons from 2005

Compared with last year’s poll, more parents have made the effort to save for their
child’s education. Last year’s parent poll found that 37% of parents had not saved
anything, while this year, the number dropped significantly to only 10%.

This year, two-thirds (68%) of parents are willing to pay for more than 4 years of college
if their child doesn’t graduate on time. That number is 11% higher than last year’s poll,
showing the growing importance parents place on a four-year degree.

The online survey was distributed to 6,461 parents who have at least one child age 13 or
older and who are registered in the Next Step Magazine database. 445 parents completed
the survey.

About The Next Step Magazine

The Next Step Magazine (www.nextSTEPmag.com), a college, career and life-planning
magazine for high school students, is distributed in more than 20,500 high schools and
read by more than 900,000 students in 50 states. In addition to The Next Step Magazine,
Next Step Publishing also produces higher-education planning guides for parents, transfer
students, adults and school counselors, and a bilingual Latino Edition. The Next Step
Magazine is headquartered in Rochester, N.Y., where the first issue was published in
May 1995.

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