JPMorgan Introduces 2025 College Planning Essentials Guide

JPMorgan Asset Management launched the 12^th edition of its annual College Planning Essentials, a guide to support financial advisers in their conversations with clients about planning for education expenses.

The asset manager, which manages nearly $11 billion in 529 plan assets for more than 346,000 families nationwide, offers insights and data about why college matters; college costs and expenses; financial aid; and 529 plans.

College tuition has continued to rise in ways that outpace inflation and other household expenses. The costs have risen an average of 5.6% annually since 1983.

Financial aid has not kept pace with the rising cost of college tuition, the company found, with families now shouldering 48% of college expenses from their income and investments. This is an increase from 38% a decade ago. There is limited coverage for grants and scholarships, which often pay only a small portion of college costs.

“College planning is becoming increasingly complex, with trends showing a rise in tuition costs, evolving financial aid landscapes, and diverse saving strategies,” said Tricia Scarlata, Head of Education Savings for J.P. Morgan Asset Management, in a statement. “Understanding these trends is crucial for advisers to guide clients effectively, foster informed discussions, and build successful plans for college.”

529 Plans and Saving Opportunities

Nearly two-thirds (63%) of families are not using 529 plans to save for college expenses, which may mean they are missing out on the opportunity for tax-advantaged growth and withdrawals for qualified education expenses, the company said. 529 plans also have flexible ways for families to save, like the ability to make five years’ worth of tax-free gifts in a single year and tax-free rollovers to Roth IRAs.

The College Planning Essentials guide offers charts and data to help advisers “debunk myths about education costs and encourage informed financial decisions,” according to JPMorgan.

For example, it provides illustrations to show how small increases in investment returns can significantly impact education funds, to help advisers emphasize the importance of starting early and staying diversified.