College Savings Month Survey (September 2014)

http://www.savingforcollege.com/articles/college_savings_month_survey_september_2014_679

This year’s College Savings Month survey focused on the factors involved in deciding which 529 college savings plan to enroll in. With so many college savings plans available, choosing a plan can often be a daunting process for families. The survey attempted to shed light on which factors are the most important to consumers, and how they affect their choice of whether to enroll in an in-state 529 plan or a plan in another state.

The survey was administered online to visitors to the Savingforcollege.com website between September 2 and September 26, 2014. 680 respondents completed the survey.

• 56% of respondents who currently have a 529 account have it in plan offered by their state of residence. Over half of these respondents selected the in-state tax deduction as the biggest reason for doing so.
• Of the 529 plan account owners who selected an out-of state-plan, 28% did so because their chosen plan had a good reputation, 27% chose a plan offered by a financial institution where they already invest, and 25% made their choice based on a recommendation from a financial advisor.
• Among those who are considering opening a 529 plan but have not yet done so, 70% have not yet decided whether they would open a plan from their home state or another state. This group's number one consideration in choosing a 529 plan was that the plan have low administrative fees, which came in above a good reputation and historical plan performance.
• 6.2% of respondents stated they thought they had to open an account with their own state’s 529 plan, indicating some confusion still remains on the residency rules of 529 plans.