529 Day Reminds Private College 529 Plan Savers to Lock in 2011 Tuition Rates Now

ST. LOUIS, May 18, 2011 /PRNewswire/ -- As "529 Day" approaches on May 29, the Tuition Plan Consortium, a national group of private colleges and universities that sponsors Private College 529 Plan(SM), reminds college savers to lock in tuition rates for 2011 by putting contributions into their Private College 529 Plan by June 30, 2011. After that date, 2012 tuition costs go into effect. According to the College Board, the average annual price for a private college in 2010 was $34,000 and given tuition inflation, a private college education for today's toddlers could cost $100,000 per year. Parents who use a pre-paid 529 plan like Private College 529 can lock in today's rates for tomorrow's students.

"Saving early and saving often is a great way to ease the expense of college tuition. With the average tax refund coming in at approximately $3,000 this year, college savers can lock in almost 10 percent of a year of their child's future tuition," said Nancy Farmer, president of Tuition Plan Consortium. "After June 30th, our college savers will be buying tuition at 2012 rates."

According to a recent College Savings Foundation study, parents saving for college with 529 accounts have been more successful than those saving without them. In fact, 69 percent of parents saving with a 529 plan have saved more than $5,000 per child, versus only 25 percent of those without a 529. A separate College Savings Foundation study found that 16- and 17-year-olds are feeling the pinch. Seventy-three percent wish their parents had saved more for their college education and 79 percent said costs had affected their higher education choices.

Farmer continued, "Proactively saving is something parents and future students can do now to lower anxiety about paying for college in the future. Some college savings tools, such as Private College 529 Plan, even offer inherent rewards for starting early. By allowing families to lock in today's tuition prices for tomorrow's education, parents and future students are able to minimize the effects of rising tuition costs."

About Private College 529 Plan(SM) and the Tuition Plan Consortium

Owned and operated by a national consortium of more than 270 leading private colleges and universities, Private College 529 Plan was created by authorization of the U.S. Congress for colleges and their consortia to help families save for college and increase the affordability and accessibility of higher education. Private College 529 Plan enables families to invest in their children's future by prepaying tuition at member institutions, protecting their savings from annual tuition inflation.  

The educational mix of private institutions participating in Private College 529 Plan provides families with a wide range of college choices. As opposed to other state specific congressionally authorized plans, Private College 529 Plan has a national scope, with participating private colleges across the United States. It also differs in that its administrative management is by the institutions themselves as opposed to government. Today, Private College 529 Plan is working for nearly 6,000 families with more than $200 million under management. For more information, visit https://www.privatecollege529.com/.

SOURCE Tuition Plan Consortium