The Guide provides saving and investing insights to help advisors and their clients plan for education
NEW YORK, March 25, 2025 -- J.P. Morgan Asset Management today launched the 12th edition of its annual College Planning Essentials. This comprehensive resource equips financial advisors with the latest insights and data to facilitate meaningful conversations with clients about saving and investing for college. Featuring clear, compelling charts and data, the guide helps advisors debunk myths about education costs and encourage informed financial decisions.
"College planning is becoming increasingly complex, with trends showing a rise in tuition costs, evolving financial aid landscapes, and diverse saving strategies," said Tricia Scarlata, Head of Education Savings for J.P. Morgan Asset Management. "Understanding these trends is crucial for advisors to guide clients effectively, foster informed discussions, and build successful plans for college.”
Key Findings from 2025 College Planning Essentials include:
- Escalating College Costs: College tuition has surged by an average of 5.6% annually since 1983, significantly outpacing other household expenses and underscoring the urgent need for families to plan ahead.
- Financial Aid Realities: Despite the rising costs, financial aid has not kept pace, with families now shouldering 48% of college expenses from their income and investments, up from 38% a decade ago. There is limited coverage for grants and scholarships, which often pay only a small portion of college costs.
- 529 Plan Utilization: Despite the benefits of 529 plans, including tax-advantaged growth and withdrawals for qualified education expenses, 63% of families are not utilizing these plans, missing out on potential savings and growth.
- Tax-Advantaged Options: 529 plans offer additional tax-advantaged options for more control and flexibility, such as making five years' worth of tax-free gifts in a single year and tax-free rollovers to Roth IRAs, with minimal impact on financial aid eligibility.
- Education Savings Investing Strategies: Emphasizing the importance of starting early and staying diversified, the guide illustrates how small increases in investment returns can significantly impact education funds.
J.P. Asset Management manages nearly $11 billion in 529 plan assets for more than 346,000 families nationwide. The J.P. Morgan Asset Management Education Savings team helps financial advisors serve their clients by providing industry-leading insights to inform education savings and offers two 529 plans available nationwide. For more information on J.P. Morgan Asset Management's education savings solutions, please visit jpmorgan.com/529.
To view the full College Planning Essentials, click here.
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $3.6 trillion (as of 12/31/2024), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information, visit www.jpmorgan.com/am.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorganChase had $4.0 trillion in assets and $345 billion in stockholders’ equity as of 12/31/2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
For more information about New York’s 529 Advisor-Guided College Savings Program, you may contact your financial professional or obtain an Advisor-Guided Plan Disclosure Booklet and Tuition Savings Agreement at www.ny529advisor.com or by calling 1-800-774-2108.This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider it carefully before investing.
Before you invest, consider whether your or the Beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program.
The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering New York’s 529 Advisor-Guided College Savings Program (the “Advisor-Guided Plan”). Ascensus Broker Dealer Services, LLC serves as Program Manager for the Advisor-Guided Plan. Ascensus Broker Dealer Services, LLC and its affiliates have overall responsibility for the day-to-day operations of the Advisor-Guided Plan, including recordkeeping and administrative services. J.P. Morgan Investment Management Inc. serves as the Investment Manager. J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. JPMorgan Distribution Services, Inc. markets and distributes the Advisor-Guided Plan. JPMorgan Distribution Services, Inc. is a member of FINRA.
No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation, J.P. Morgan Investment Management Inc., Ascensus Broker Dealer Services, LLC, JPMorgan Distribution Services, Inc., nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.
New York’s 529 College Savings Program currently includes two separate 529 plans. The Advisor-Guided Plan is sold exclusively through financial advisory firms who have entered into Advisor-Guided Plan selling agreements with JPMorgan Distribution Services, Inc. You may also participate in the Direct Plan, which is sold directly by the Program and offers lower fees. However, the investment options available under the Advisor-Guided Plan are not available under the Direct Plan. The fees and expenses of the Advisor-Guided Plan include compensation to the financial advisory firm. Be sure to understand the options available before making an investment decision.
The Advisor-Guided Plan is offered through financial intermediaries, including broker-dealers, investment advisers and firms that are registered as both broker-dealers and investment advisers and their respective investment professionals. Broker-dealers and investment advisers are subject to different standards under federal and state law when providing investment advice and recommendations about securities. Please ask the financial professional with whom you are working about the role and capacity in which their financial intermediary acts when providing services to you or if you have any questions in this regard.
The Program Administrators, the Program Manager and JPMorgan Distribution Services, Inc., and their respective affiliates do not provide legal or tax advice. This information is provided for general educational purposes only. This is not to be considered legal or tax advice. Investors should consult with their legal or tax advisors for personalized assistance, including information regarding any specific state law requirements.
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