Selected SLC Research
SLC Regional Resource | March 1, 2011
In recent years, both types of Section 529 plans have faltered, due to a poor investment climate and rising tuition. When most programs were instituted, there was an unfailing optimism in the potential for the stock market to continue to expand and create returns that would outstrip any increase in tuition which historically ranged below 5 percent, making the extension of this state guarantee a risk of a presumably remote nature. As tuition skyrocketed and the stock market failed, however, states have been forced to reconsider the guarantee extended to prepaid tuition plans, and college savings plans are not keeping up with rising costs. This SLC Regional Resource offers a look at recent trends and events on state section 529 plans within the SLC member states.