American Funds and CollegeAmerica Celebrate National 529 Day, While a Young Girl's Dream Is Coming True

LOS ANGELES, May 28, 2014 /PRNewswire/ -- Because stories on 529 College Savings Plans often focus on alarming statistics about student loan debt or the rising cost of college, we may forget that these financial vehicles are about making dreams come true.

Consider the story of Jilyan Decker, who knew at an early age that she wanted to be a doctor. Thanks to a prudent investment decision by her parents, Jilyan is now a first-year medical student who won't be burdened by heavy debts when she graduates.

In 2005, when Jilyan was 12, her father, Charlie, took her with him on a visit to his financial advisor, in Monmouth County, N.J. Decker recalls the visit this way:  "Jilyan was a little shy and didn't say much, but when my adviser asked her what she wanted to be when she grew up, she immediately said 'I want to be a doctor.' Then he handed her that brochure with the picture of the little girl and the headline 'She wants to be a doctor.' That really stayed with me."

The brochure was for American Funds' CollegeAmerica which, according to Strategic Insight, is the nation's largest 529 college savings plan with almost $50 billion in assets. Decker and his wife helped fund Jilyan's education with a CollegeAmerica plan and she is finishing her first year of studies at the New Jersey Medical School at Rutgers University -- just as National 529 Day is observed.

"I always wanted to have something to do with medicine," says Jilyan." I want to be part of the reason a person can wake up every morning; to watch his or her children grow up or to simply enjoy life. I don't see medicine as a way to make money. I see it as a way to help people. I'd love to one day work for a humanitarian medical group such as Doctors Without Borders. Medicine is challenging but if you use it to improve the quality of people's lives, it can be extremely rewarding."

"Jilyan's story is a great example of what planning ahead and investing carefully can mean for students and their families," said Kris Spazafumo, Vice President, Investment Services, at American Funds Distributors, Inc. "Unfortunately, recent surveys show that 70% of Americans don't know what a 529 plan is. That's really why 529 Day is important – to make more people aware of this opportunity."

About those statistics:

• Outstanding student loan debt surpassed $1 trillion early in 2012 and continues to grow at a steady pace. (Source: Consumer Financial Protection Bureau)
• The median education debt for indebted medical school graduates in 2013 was $175,000, with 86% of medical school graduates reporting that they have education debt. (Source: October 2103 report from Association of American Medical Colleges)  

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus, summary prospectus and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.

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SOURCE American Funds