With college costs up 50% over the last decade, more and more families are investing in tax-advantaged

529 plans.

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Fast Facts: SAVING FOR COLLEGE

FACT: College tuition and fees have increased by 50% (adjusted for inflation) over the last decade.

FACT: As a result, saving for college has become a priority for many students and parents. According to recent Sallie Mae surveys:

One-fifth (21%) of parents with children aged 17 or younger rank saving for college as their top savings priority, equivalent to the percentage (22%) who rank saving for retirement as their top saving priority.

96% of college students agree that they have some responsibility to fund their college education.

FACT: The typical American family had an average of $28,102 saved for college education in 2010, according to data from Sallie Mae.[1] This savings was spread across a variety of vehicles, including:

23% in parents retirement accounts 21% in investments 14% in general savings accounts 12% n 529 College Savings Plans

FACT: An increasingly popular and tax-advantaged way for families and students to save for college is by investing in 529 College Savings Plans.

What are 529 College Savings Plans? 529 plans are state-based and allow assets to accumulate and be withdrawn tax-free to pay for qualified college costs. They are managed by state treasurers or outside investment companies. Families can usually choose from a range of investment options. By the end of 2002, all states had such plans in operation.

FACT: The most commonly cited reason given by parents who are saving for college but not using a 529 plan is that they do not have enough information about 529s.

For more information about your states 529 plan offerings, a reliable resource is www.savingforcollege.com.

FACT: Over the last decade, total assets in 529 plans have multiplied eight-fold. Nearly $170 billion is currently invested in 529 plans nationwide. FACT: The average balance <of all 529 plans> reached an all-time high of $16,959 in July 2011.

[1] This statistic is for families who have some amount for college saved and have children aged 17 or younger. By the time the child reaches age 18, these families have an average of $48,367 saved.

forward to a friend Financial Services HOTLINE: If you have questions about this topic or any other issue facing financial services, please reach out to Abby McCloskey, Director of Research at the Financial Services Roundtable, at 202-589-2531 or Scott Talbott, Senior Vice President of Government Affairs, at 202-2894322. Learn more about the Financial Services Industry at www.OurFinancialFuture.com. OurFinancialFuture.com is continuously updated to bring you the most useful information about the industry in real-time.

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