As many of us are recovering from making that first college tuition payment of the new school year, it's worth taking a look at one vehicle that has made such things a little less painful: the 529 plan. These plans continue to grow in popularity and volume: According to the College Savings Plan Network, there is now $258.2 billion being held in 529s, an increase of 5.6 percent over last year.
Most of that growth has come from new plans rather than people putting more money into existing ones. There were about 500,000 new 529s opened over the past year, but the average account in each of them rose by just 1.3 percent, to an average level of $20,934.
That might be an issue for some people, because tuition is growing faster than that. The growth of tuition for private nonprofit four-year colleges grew at 3.7 percent during the 2014-15 academic year.
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