Despite 1.6 million new accounts and more than $10 billion in new assets under management in 529 college savings plans last year, providers have been disappointed with the performance of the individual plans according to a recent report by Cerulli Associates of Boston.

While there are more than 70 savings plans now in operation, a mere seven providers closed 2002 with in excess of $1 billion in assets, Cerulli said. But, assets in the plan are expected to grow 40% by 2008, compounded annually, according to Cerulli.

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