Investment in 529 college savings and prepaid tuition plans reached a record level in the first six months of 2013, according to a midyear report released Tuesday by the College Savings Plan Network.
Total investment in 529 plans reached $205 billion and the number of open 529 accounts increased to 11.43 million as of June 30, 2013, up from 10.74 million in December 2011.
“As families reach a crossroad about the value of higher education, our mid-year report finds that they have continued their commitment to save for and invest in college education,” Hon. Michael L. Fitzgerald, Chair of the College Savings Plans Network and State Treasurer of Iowa, said in the report. “The steady increase of total assets, account size and contributions in 529 plans are positive signs that Americans recognize saving for college as a long-term commitment and investment. Fostering this mid-year success, if the government undertakes the new initiative to slow tuition increases, then families’ hard earned 529 savings will go further to cover more college costs.”
529 plans are offered in 49 states and the District of Columbia.