Education Savings Account Alabama

Families Report High College Savings Goals, But Don’t Have a Plan to Meet Them, Reveals New National Study from Sallie Mae.

Sallie Mae
 see SLM Corporation.
 Provides Resources, Recommends Parents of Infants Through
Teens Create a Plan to Save

NEWARK, Del. — Despite rising college costs, fewer American
families with children under age 18 save for college (50%) than did just
two years ago (60%),
according to

1. As stated or indicated by; on the authority of:

2. In keeping with:

 a research report released today from
Sallie Mae and Ipsos. While nearly all parents believe college is an
investment in their child’s future, only one-third have a plan to
pay for college. Many families not yet saving for college give
non-monetary reasons that may be overcome with more financial education.
As part of America Saves Week, Sallie Mae encourages families to start
making saving for college a habit today.

“Households from all income groups are more likely to save
successfully with a plan,” said Nancy Register, director of America
Saves – a national social marketing campaign that encourages individuals
and families to save money and build personal wealth. “As the cost
of college continues to rise, America Saves Week, now through March 2,
is a great opportunity for parents and their children to make a plan to
save for college.”

“We are concerned that many families are putting off financial
preparations for college,” said Sallie Mae President & COO Jack
Remondi. “Saving even small amounts can add up over time, and every
bit helps. Sallie Mae is committed to offering tools and resources to

When asked to describe their feelings about saving for college,
parents’ top answers were overwhelmed, annoyed, frustrated, scared,
or that they don’t like thinking about it at all. Among those not
saving, 47 percent cite a barrier other than money. Top reasons included
thinking that children would be awarded enough financial aid to cover
the cost of college, children are too young or too old, uncertainty
about which savings option to use, procrastination, and feeling it is
the child’s responsibility to pay for college.

Starting to save is most frequently prompted by major milestones
such as a child’s birth (34%), starting school (24%), or learning
about college costs from friends and family (20%).

Slightly more than one quarter (27%) of parents who are saving for
college use a 529 college savings plan. However, more parents save for
college using general funds or CDs (42%) and may miss out on tax
incentives offered by a 529 account.

Sallie Mae’s Upromise college savings rewards program helps
families save little by little as they make everyday purchases, Sallie
Mae’s subsidiary Upromise Investments, Inc., and its affiliates,
administer tax-advantaged 529 college savings plans in 16 states, and
the Sallie Mae Bank offers savings accounts and CDs. Tools to help
understand the future costs of college and create a plan are available

The report, “How America Saves for College,” is based on a
nationally representative survey of 1,621 parents of children under age
18. The full study and related infographic are available at

Sallie Mae (


) is the nation’s No. 1

 company specializing in education. Celebrating 40 years of
making a difference, Sallie Mae continues to turn education dreams into
reality for American families, today serving 25 million customers. With
products and services that include 529 college savings plans, Upromise
rewards, scholarship search and planning tools, education loans,
insurance, and online banking, Sallie Mae offers solutions that help
families save, plan, and pay for college. Sallie Mae also provides
financial services to hundreds of college campuses as well as to federal
and state governments. Learn more at Commonly known as
Sallie Mae,
SLM Corporation
 foremost provider of funding for higher education to American students; commonly known as Sallie Mae. The company, which also offers information and resources to assist students and others in obtaining funding, had a portfolio of some $127 billion in
 and its subsidiaries are not sponsored by or
agencies of the
United States of America


Photos/Multimedia Gallery Available: