More than half of American families who plan to send their children to college have not started saving and 75% have not heard of 529 college savings programs, according to a national survey conducted by Morgan Stanley of New York. Morgan Stanley manages College SAVE, a 529 plan offered by the state of North Dakota.
According to an online survey of 1,079 families, 54% of those who plan to send their children to college have not started saving for college. Sixty-seven percent of those who are saving believe they are not saving enough. The study also indicated that, despite recent press coverage on the tax advantages associated with 529 college savings plans, three quarters of survey respondents said they were unaware of 529s.