“This new data shows that prepaid tuition plans continue to be a solid choice for families with young children to save for college,” said Betty Lochner, Director of Washington’s GET Program, and Vice Chair of CSPN.
Lexington, Ky. (PRWEB) February 14, 2012
The College Savings Plans Network (CSPN), the nation’s authority on 529 College Savings Plans, reported that as of the close of the most recent fiscal year, Section 529 prepaid tuition plans are, on average, approximately 93 percent funded. This is a slight increase over the past fiscal year, typically ending June 30, when the national average of funded prepaid 529 plans was 91 percent.
This average is based on data aggregated exclusively by CSPN from 19 of 20 prepaid 529 tuition plans, including those that are both open and closed to new enrollments. According to CSPN, 11 prepaid tuition plans are currently open for new enrollments, and all are nearly fully funded at a national average of 97 percent. In total, $22.4 billion has been saved in more than 1.6 million prepaid tuition accounts administered by 20 states.
“This new data shows that prepaid tuition plans continue to be a solid choice for families with young children to save for college,” said Betty Lochner, Director of Washington’s GET Program, and Vice Chair of College Savings Plans Network. “On average, prepaid tuition plans have recovered well from the recession, and they’re continuing to absorb recent increases in college tuition. In fact, their 93 percent average funded status far exceeds the 76 percent average funded status that’s currently estimated for our country’s public pension funds.”
Twenty states currently manage prepaid tuition plans (11 of which are open to new enrollments), which enable families to purchase contracts or units at a set price which will cover future college tuition benefits when the student is in college. Benefits for all prepaid programs may be used at nearly any public or private college in the country, though the specific promise to cover full tuition may be limited to certain schools that are typically in-state public colleges.
CSPN releases proprietary data on 529 college savings plans semiannually. Data from the next 529 Report will be released in March 2012. For the most up-to-date, unbiased information on 529 plans, or for more information on prepaid 529 College Savings plans, visit http://www.CollegeSavings.org.
About College Savings Plans Network (CSPN)
College Savings Plans Network (CSPN) is a leading voice for Section 529 College Savings Plans, one of the most popular, convenient and tax-advantaged ways to save for college. CSPN is a not-for-profit association affiliated with the National Association of State Treasurers (NAST) that brings together state administrators of 529 savings and prepaid plans as well as their private sector partners. Information that families of all income levels can use to make informed saving decisions is available on CSPN’s website, http://www.CollegeSavings.org.