Your Resource for Trends and Information

College Savings Foundation 2010 Summit:
The Importance of Education on Global Competitiveness and the US Economy
September 29, 2010 - Washington, DC

• America's Perfect Storm: ETS
• Employers’ Views on Skills Needed in the Current and Future Workforce: Business Roundtable
• Employers' Views on Skills Needed in the Current and Future Workforce: BHEF
• Employer’s View on Skills Needed in The Current and Future Workforce, AACC
• Canon Workforce Development Center
• The Classroom of the Future Can Technology Restore Our Competitiveness: APSU
• StraighterLine
• Using Technology to Transform Higher Education: Education Sector
• Initiatives that Meet the Challenge, Virginia529 College Savings Plan
• Access College Foundation
• Digital at the Core: VSU

2010 Survey of Parents
Parents shift behavior to save more for their children’s education

FIDELITY® PROVIDES INCOME-BASED COLLEGE SAVINGS GUIDELINES AS STUDY SHOWS PARENTS PROJECTED TO MEET ONLY 16% OF FUTURE COLLEGE COSTS
More Families Saving for College, Saving in a Dedicated Account, and Knowledgeable About Tax-Advantaged 529s

FIDELITY® SURVEY FINDS NEARLY SEVEN IN TEN HIGH SCHOOL SENIORS THINK MEETING COLLEGE COSTS IS OVERWHELMING
Despite Cost Concerns, More High School Seniors Believe a College Education is a Minimum Requirement for a Decent Job

Two Suggestions to Help Improve Access to Higher Education:
A call for increased financial literacy in K-12 and employer support of 529 plans

2010 Survey of Youth:
How Youth Plan to Fund College - A survey by the College Savings Foundation of over 500 16- and 17-year olds from across the country

2009 Survey of Parents:
“The State of College Savings” Survey Finds Parent Confidence Crashing As They Rely on Loans, Shift Debt Burden to Their Children

Improving Access to Higher Education by Promoting Savings
Consortium of experts issues white paper on 529 college savings plans

Washington, DC, June 24, 2009 – Following a Spring 2009 summit on saving for college, experts from financial services, state government, financial aid and higher education collaborated to produce a new white paper titled, “Improving Access to Higher Education by Promoting Savings: private and public sectors share responsibility for promoting financial literacy and providing solutions to increase savings opportunities.”

These insights come as a renewed emphasis on education is highlighted by the Obama administration, which has drawn parallels between the country’s commitment to higher learning and its ability to eventually regain its leadership position on the world stage. However, there remains a wide gap between this stated need for education and the general public’s ability to afford it. 

According to the paper:  “529 college savings plans are growing in acceptance as the savings tool of choice, yet significant misperceptions and barriers remain that stifle their use as the pre-eminent savings vehicle for higher education.  Easing financial access to college demands more widespread, basic education about 529 plans and, eventually, improvements to the ways in which they can be used to respond to the challenges at hand.”

The paper outlines current challenges and offers recommended actions, including:

• A federally-funded campaign of Public Service Announcements, serving as a low-cost, high-impact initiative to significantly boost awareness and adoption of 529 plans

• Providing incentive for employers to offer 529 plans as part of benefits packages by passing legislation to allow nontaxable employer matching contributions

• Removing 529 savings from the Free Application for Federal Student Aid (FAFSA), thereby eliminating the perception that families are penalized for investing in the plans.

To access the white paper, please download the PDF or contact Evan Zall at ezall@thinktelos.com.

Saving for College with a Safety Net:
Low Risk Investment Options – Renewed Interest for 529 Plan Administrators
A State-by-State Analysis of Advisor and Direct Plan Options
Andrea Feirstein, AKF Consulting
May 2009

Some silver linings are starting to emerge from the market turmoil of 2008 and 2009. In the 529 college savings market, the bittersweet bonus of the recession is this: investors need to feel comfortable about continuing to save for college and many plans offer investment options that will deliver that comfort. For investors and advisors, it’s just a matter of doing the legwork to find those plans. For state administrators, it’s time to make sure that your plan is among those that continue to attract otherwise gun-shy investors. State plan administrators need to identify those short term or otherwise conservative investment options that will appeal to all investors and provide a place to park precious financial resources until a sense of stability prevails once again.

The following AKF Market Report surveys the state 529 plan marketplace to assess the various
options in advisor and direct-sold programs. It finds a wide range of investment options that state
administrators and plan managers should be marketing now in order to reassure the public that
saving for college is important and doesn’t have to be overly risky.

Read the AFK Market Report

2008 State of College Savings Survey finds Financial Education Pays.

The College Savings Foundation’s State of College Savings survey of 800 parents across regions and income levels found parents are saving less for their children’s college education in 2008 than in 2007 and more people have saved nothing at all.  But the 30 percent of parents who know the amount they need to save to fund their children’s college education are much more likely to succeed in reaching their goals than the 70 percent who admit not knowing.

The State of College Savings - 2008 Survey of Parents

2007 State of College Savings Survey Reveals for the First Time that American Families intend to Rely on Long-term Debt, Rather than Savings, to Fund their Children’s Futures. 

The College Savings Foundation’s State of College Savings survey involved 447 parents from across the country and spanned income levels.

The State of College Savings - 2007 Survey of Parents

Data Collection Project

The College Savings Foundation has an active and ongoing data collection project in which we gather key data on 529 plans from member organizations every quarter.  This project tracks such things as the number of accounts and beneficiaries and account balances and assets and produces an industry-leading data set.  The College Savings Foundation has retained Financial Research Corporation (FRC), a Boston-based financial services consulting firm that has closely monitored the college savings plan industry since 2000.

The College Savings Foundation has retained Financial Research Corporation (FRC), a Boston-based financial services consulting firm that has closely monitored the college savings plan industry since 2000, to maintain the database on behalf of the industry.

College Debt Crunch: The Long-Term Impact of Education Debt on College Graduates

• College Debt Has a Profound Effect on Financial Security, Well-Being and Life Choices For Years to Come
• Key Research Findings
• Visit the web site

Fidelity Poll Shows New Pension Law Could Significantly Increase National Adoption of 529 Plans

• View PDF