The College Savings Foundation released its 20th Annual State of Higher Education Savings Survey, polling 1,000 parents of children age 25 and under. The headline numbers: 93% of parents plan to help fund their children's education, 84% call higher education a good investment, and half are saving in a 529 plan.
Parents are also defining higher education more broadly than a four-year degree. While 53% expect their kids to attend a traditional four-year college, 85% believe their children will need to keep adding skills throughout their careers, and respondents rated career and technical schools as valuable as college.
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Why It Matters
This is the first generation of parents who grew up alongside 529s. 41% of parents said 529 funds helped pay for their own education, and 77% of that group say it motivates them to save for their kids.
Another 46% would use a 529 for their own education, which the accounts allow.
The savings totals are stronger than you might expect: 73% of parents have saved more than $5,000 per child. That's a real start, though still short of what a 529 balance should look like by age.
Key Numbers
Among the 50% of parents saving in a 529:
- 92% make automatic monthly (64%) or quarterly (28%) contributions
- 52% chose a 529 for ease of saving, 34% for federal tax-free earnings, and 11% for gifting flexibility
Awareness of newer 529 rules is uneven:
- 65% know 529s cover more than traditional college
- 61% know they can use up to $20,000 per year for K-12 tuition
- 58% know they can put $10,000 toward student loans
- Only 49% know unused funds may qualify for a tax-free rollover to a Roth IRA
Student Loan Debt Still Looms
Despite the savings progress, 71% of parents still expect to take on some loan debt: education loans (46%), credit card debt or cash advances (21%), and borrowing against retirement (11%).
With outstanding student loan debt around $1.8 trillion, those last two categories stand out — credit cards and retirement accounts sit near the bottom of the recommended order of operations for paying for college.
How This Connects
529 plans held $627 billion across 17.3 million accounts as of Q2 2026, according to ISS Market Intelligence, and balances hit record levels after the Roth rollover rule took effect.
Congress keeps increasing the qualified expenses the accounts cover: trade schools, professional licenses, and certificate programs were added last year, and the 2026 expansion doubled the K-12 withdrawal limit to $20,000. This survey suggests families are following where the policy leads.
CSF says it wants more families making small, early, regular contributions to offset borrowing, and the awareness gap is the opening: roughly half of parents still don't know about the Roth rollover or student loan payoff options.
Meanwhile, the Class of 2026 is projected to borrow $43,500 for a bachelor's degree, so the savings-versus-debt tradeoff isn't going away.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.