Advisers should study up on 529s

Advisers need to be educated about college savings plans in order to better serve ther clients. That was one of the messages delievered at a confernce on colleges savings this morning sponsered by AllianceBernstein Investments.
MAY 08, 2007
Advisers need to be educated about college savings plans in order to better serve ther clients. That was one of the messages delievered at a confernce on colleges savings this morning sponsered by AllianceBernstein Investments. A college education is at the core of the American dream, but most Americans are not preparing to stomach its escalating costs, said Jennifer DeLong, director of College Savings Plans at AllianceBernstein Investments, speaking at the conference this morning. Ms. DeLong said that families paying college tuition right now can expect to pay an average of $55,132 for a public school education, or $130,886 for a private school education. Those numbers are expected to increase by more than double for those entering college in 2024, she said, with public and private school education increasing to $132,731 and $313,992, respectively. Ms. DeLong criticized families putting the money towards lavish vacations, flat screen televisions and their own retirement, instead of socking away money to for college. "Families need to learn to prioritize and people aren't realistic," said Barbara E. Tornow, executive director of the Financial Aid Office at Boston University. "Financial advisers can tell families that they can drastically lower to cost and pain [of paying for college] if they start saving," Ms. Tornow said. "College savings are a small ticket item for advisers," she said, adding that advisers need to be educated about 529 programs and other vehicles to help them plan for college. AllianceBernstein LP is based in New York.

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