How can we get colleges to give honest information about the 529 college funding plan, as the money is invested as if the economic depression did not occur?
Colleges base a contribution to a 529 savings plan based on good old times of 7% return in today's risky mutual funds. In January 2010, the total accumulated value DROPPED 3.7% to 7.1 % depending on the fund market used. If total cost of quality education is $100,000, and ends up at a realistic $60,000 in college savings achieved, can a loss of $40,000 per student be handled? The government and states cannot balance budgets. Being already in debt the state would either have to stop the program, refund current participants, or change their risky investments and use realistic projections. (For example a fixed annuity might only return 4%, but the principal is guaranteed.)
