Just over half of 13 year olds say they expect to go to college, compared to almost 80% of parents who think they will.
According to an ESRI study, young people who have more positive interaction with their teachers have higher expectations.
It also found that parents expect more of their daughters than their sons.
Professor Emer Smyth of the ESRI says teachers can make a huge difference to students' pathways.
"The research also shows that the school climate is key.
"Young people who have had more positive relationships and more positive interactions with teachers have higher expectations, and those who have been given out to or reprimanded more often have lower expectations.
"So what teachers do can actually make a difference to how people view their future pathways."