The report, released Sept. 5, also predicts this trend could have a negative effect on the nation's economy in 25 years.
The study, conducted by the Pew Hispanic Center -- a nonpartisan research group -- used data from the U.S. Census Bureau's Current Population Survey from 1997-2000.
Dianne Saenz, director of communications for the Pew Hispanic Center, said the study was conducted to assess progress in educational attainments among Hispanics.
The report found that about 42 percent of second-generation Hispanics age 18-24 who graduated from high school attended college, compared to 46 percent of whites.
The report also stated that second-generation Hispanics were more likely to go to college than foreign-born Hispanics. But only 16 percent of second-generation Hispanics who graduate from high school receive a bachelor's degree, the report stated.
Fewer Hispanics, about 1.9 percent, also pursued graduate and professional degrees, whereas 3.8 percent of whites pursued similar degrees.
Saenz said Hispanics' lack of higher education will be detrimental for the economy.
"Latinos are growing very quickly as a population group," she said. "In (25 years), up to 5 million baby boomers will retire from the work force. Eighteen million Latinos will be there to take their place.
"That's bad for the economy if they are not well-educated."