Sallie Mae survey shows decrease in number of American families saving for college

Sallie Mae's How America Saves for College 2013 study found that the percentage of American families with children under age 18 who are saving for college has decreased from 60 percent to 50 percent in the past two years.

Despite the rising costs of college, the survey shows that only one-third of parents have a plan to pay for college, the other two-thirds citing reasons such as the expectation of financial aid and uncertainty about which savings plan to use as barriers.

The study also found that slightly more than one quarter (27 percent) of parents who are saving for college are using a 529 college savings plan. Forty-two percent are saving using general funds or CDs.

The study is based on a survey of more than 1,600 parents of children under age 18.
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