Retirement Plans Increasingly Raided for College Tuition

Retirement plans of parents who have college-aged children are being tapped to pay for college tuition, according to a study published on Tuesday by Gallup and educational lender Sallie Mae.

Nearly a quarter—24 percent—of all parents in the US say they use their retirement accounts to pay or save for college tuition, the study noted.

Some of those parents are not aware of or are not familiar with 529 college savings plans that could benefit from tax breaks and low fees.

Eighteen percent of parents say they don’t know how to save for their children’s college tuition, and nearly 28 percent are unclear about which savings options are the best.