College savings plans

As the cost of college soars and many state institutions are charging as much as $36,000 a year for out-of-state students and private college costs approaching more than $50,000 a year, the percent of total costs families say they are able to cover themselves has fallen. Yet most advisors aren't recommending 529 college savings plans to their clients.

J.P. Morgan Asset Management has been selected as the investment manager for New York’s $1.9 billion 529 college savings plan. After completing the extensive request for proposal process, J.P. Morgan said, negotiations will now begin on the details of the seven-year agreement.

A five-pronged approach for college savings plan success.

Still, a majority of class of 2011 respondents, 66%, who are graduating with debt say the value of college is equal to or worth more than the debt accumulated.

Fulltime students at four year schools received about $16,000 in aid this year.

Advisors and regulators expect one rather odd twist for college savings plans.

The Financial Industry Regulatory Authority has censured and fined Merrill Lynch, Pierce, Fenner & Smith Inc. $500,000 for failing to establish and maintain written supervisory procedures to ensure that its representatives considered customers’ state income-tax benefits in their suitability analyses of 529 college saving plans.

According to a poll conducted in October and released on Wednesday by InCharge Debt Solutions Americans are significantly more concerned about future expenses than paying off existing debt or paying their current bills.

College savings funds have slashed fees this year, Morningstar reports, making them worth another look.

According to Morningstar, Alaska, Maryland, Nevada, Ohio and Virginia are all considered best in class across five performance areas.

For anyone born today, the cost of four years at a private college will be about $440,000 by the time they arrive at those hallowed halls.

CHET Advisor is the first advisor-sold 529 plan sponsored by the state. TIAA-CREF will continue to run the Connecticut Higher Education Trust, a direct-sold 529 college savings plan first launched in 1998.

Robert Reynolds, the company’s chief executive officer, said in an interview Thursday that Putnam has offered 529 plans for 10 years, but this plans will take a broader national approach.

Vanguard lowered fees on its Nevada 529 as Fidelity adds bank deposit option to its 529 plans.

Putnam will join USAA, Columbia Management, Vanguard and Upromise, who also run 529 plans through Nevada. Columbia also manages an advisor-sold plan.

The fourth annual College Savings Indicator study found that the percentage of college costs parents are projected to meet is only 16%, down from 18% last year, and 24% in 2007, the first year of Fidelity’s survey. However, those who work with an advisor are projected to meet 28% of college costs, down from 34% last year.

The Tuition Plan Consortium said Monday it re-launched Independent 529 Plan as Private College 529 Plan, to foster pre-purchasing of tuition fees as present rates. The consortium said its Private College 529 Plan will offer investors a way to lock in tuition rates at more than 275 private colleges and universities.

The insurance company made a series of changes to its college-savings program, including a new business relationship with Upromise and new age bands in the age-based portfolios.

Plan managers hope lower prices lure back savers who are savvier — and more wary — of fees.

The findings are a sign that advisers can be an important part of including children in the conversation around college savings and building a sound financial plan.