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The Markets February 15, 2012
Prepaid Tuition Plans Are 93% Funded
The College Savings Plans Network (CSPN) reported that as of the close of the most recent fiscal year, Section 529 prepaid tuition plans are, on average, approximately 93% funded.
Reported by Rebecca Moore
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%.
This average is based on data aggregated 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%. 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% average funded status far exceeds the 76% average funded status that’s currently estimated for our country’s public pension funds.”
CSPN releases proprietary data on 529 college savings plans semiannually.
More information is available at http://www.CollegeSavings.org.