529 PLANS

529 News

One-third of college savers are using 529 plans

(May 29, 2009) - In a telephone survey of 1200 parents, Sallie Mae and Gallup found that 33% of college savers have used 529 plans. A majority (59%) used savings, money market accounts, or CDs while 41% saved with stocks or bonds.

Other highlights of the survey include:
- three-quarters (75%) of parents thought it was "highly likely" their children would be attending some form of higher education after high school.
- 62% of parents of children with some likelihood of pursuing higher education (but only 32% among those with household income below $35,000) have saved or invested for college.
- One-half (50%) of college savers make contributions on a regular basis.
- 35% of those not saving for college anticipate scholarships or financial aid to cover the cost.
- Twice as many parents (27%) consider retirement as their top savings priority compared to those (14%) who consider college to be their top savings priority. However, more parents include college in their top three priorities than retirement.
- One-third (33%) of parents have scaled back their college savings due to the current U.S. economic crisis.
- More than one-half (56%) of college savers not using a 529 plan and non-savers have no familiarity with 529 plans.

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