J.P. Morgan Asset Management Launches 2025 College Planning Essentials Guide

NEW YORK, March 25, 2025 -- J.P. Morgan Asset Management today launched the 12^th 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 https://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.

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