IE 11 is not supported. For an optimal experience visit our site on another browser.

College Savings On the Rise, But Still Not Enough

Americans still aren't saving enough to pay for college, even though they are socking away twice as much as they did during the recession.
/ Source: Associated Press

Americans still aren't saving enough to pay for college, even though they are socking away twice as much as they did during the recession. In a report released Tuesday, the College Savings Plans Network found that the average college savings or prepaid tuition account known as a "529" plan is now worth about $20,671 — almost double what these accounts were worth during the dog-days of the financial crisis.

The group, which tracks the state-sponsored savings plans, attributes the increase to several factors including a healthier stock market and improved economy, as well as greater consumer awareness of 529 plans and a growing concern among parents of the cost of higher education. According to the report, contributions to 529 plans jumped from $16.5 billion in 2009 to $22.5 billion. At the same time, the $20,671 figure would only cover the first year at a public college or university and about half a year at a private college for a single year of tuition, fees, room and board.

IN-DEPTH

-- The Associated Press