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Create a personalized investment
strategy for their tomorrow.

Like any of your financial goals, your J.P. Morgan Private Client Advisor can help
you develop a plan to fund a child’s higher education.

Planning for Their Education Today

Whatever your relationship to a college-bound student - a child, grandchild or other family member - saving for college starts with a plan. By working together with your J.P. Morgan Private Client Advisor, you can develop a tailored strategy that incorporates some of the most well-researched thinking about college planning today to help you meet your goals by enrollment time.

Planning Matters

Understanding the Costs

A college degree has never been more valuable - or expensive. With a plan in place, you can help your child save for one of life's most rewarding goals, despite skyrocketing college costs. With college costs increasing 5% on average each year, if current trends continue, the price of a college degree will more than double by 2030.Footnote 1

The Cost of College Education is Rising

Tuitions, fees, room and board in 2012 dollarsFootnote 2



Total cost


  • 62% Tuition and fees
  • 38% Room and board


Total cost


  • 28% Tuition and fees
  • 72% Room and board
  • 1973
  • 1983
  • 1993
  • 2003
  • 2013
  • 2023
  • 2030

Move the slider to see how education costs are rising

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College Funding Options

For most, college funding sources typically are comprised of financial aid, borrowing, saving or investing - or a combination of these. Sometimes, people choose vehicles that don't maximize their growth potential, such as CDs, taxable investments or accounts intended for retirement.

The most financially efficient way to pay for college may be to invest in a college savings plan early in a child's life and let it grow. Your J.P. Morgan Private Client Advisor can help you understand the tax benefits and features of college savings vehicles so you can choose the best one for your needs.


Financial Aid

Financial aid can be a good way to help pay for an education, but remember, not all aid is free and not everyone qualifies. Most college students need some sort of financial assistance, but 38% of all aid comes in the form of loans that must be paid back with interest.Footnote 2

Expectations vs. Reality

Middle-income applications went from 74% in 2008 to 84% in 2013. High-income applications went from 59% to 74%. This means there is far less aid to go around.



of parents
expect to receive financial aidFootnote 3



of total families received a grant,
with an average amount of $6,538Footnote 4


of total families received a scholarship, with an average amount of $8,349Footnote 4


of college students receive enough grants and scholarships to cover all costFootnote 5


With college costs rising faster than the availability of federal aid, many families are opting to fill the growing gap with private loans. Families that don't save enough for college often have no other choice than to borrow. Today, a record one in five households owe student loan debt.Footnote 6

Student loan debt has soared in recent years, putting an increased financial burden on college graduates. Two-thirds of 2011 graduates finished school owing an average of $26,000.Footnote 7 But students aren't the only ones taking on debt for college. The average parental debt load has more than doubled in the past decade to $33,800 in 2012.

The Increasing Student Loan Debt

The average amount of student loans has increased 74% over the past 4 years

Saving & Investing

Half of U.S. families aren't saving for college. The other half often select savings plans that don't maximize their growth potential, such as CDs, taxable investments or accounts for retirement. Choosing the right savings plan and following time-tested investment strategies can help you reduce taxes, increase growth potential and accumulate more for college. The fact is, when you borrow for college, you will pay interest. When you invest for college, you will earn interest and other forms of investment returns. Investing sooner can help in the long run.

The Advantages of Starting Early

Total amounts accumulated over 6, 12 and 18 yearsFootnote 9

Comparing College Savings OptionsFootnote 10

Understanding the tax benefits and features of different college savings vehicles can help you choose the right one for your needs.

College Savings Plan

  • Tax-free investing and withdrawals for any qualified higher education expenseFootnote 11
  • Account owner control for the life of the account
  • No income limits on contributors
  • High contribution maximums
  • Low impact on financial aid eligibility
of parents contributed
to 529 plans in 2012

Custodial Account, UGMA
(Uniform Gifts to Minors Act)

  • Funds must be used for the child's benefit, not necessarily for college
  • Portion of investment earnings taxed at child's and parent's rates
  • Child assumes control at age of majority
  • High impact on financial aid eligibility
of parents contributed
to UGMA plans in 2012

Meet with your local Chase Private Client team to begin discussing your goals.

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Asking the Right Questions


Can you count on financial aid?

Only 0.3% of college students receive a "free ride" from needs-based grants and merit-based scholarships.Footnote 12 Many families earn too much to qualify for need-based aid, and even the brightest students rarely receive full scholarships. Most financial aid sources have decreased, while tuition costs have soared. From 2001 to 2011, state and local financing per student declined 24% nationally. Over the same period, tuition and fees increased by 72% at state colleges and 29% at non-profit private institutions.

How do tuition guarantee programs work?

Tuition guarantee programs vary in terms of their names and the rules. Some are pre-paid programs that enable parents to avoid tuition inflation by locking in a tuition rate at a specific school. Before you invest in a pre-paid program, consult with your J.P. Morgan Private Client Advisor who can help you evaluate the benefits of these programs and compare them to other alternatives that may be more suitable for your situation.

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Interested in Learning More?

Meet with a local Chase Private Client team to discuss
your financial goals and how we could help you reach them.


Additional Goals

Planning for Your Future Today

Feel confident about your future

Making small adjustments to your plan today may have a substantial impact on tomorrow. Working with your
J.P. Morgan Private Client Advisor, you can make changes as your life and goals evolve.

Attaining the Retirement You Imagined

Retire on your terms

Your J.P. Morgan Private Client Advisor will work with you to develop a retirement strategy that’s as unique as you and your lifestyle.

LEARN MORE about Attaining the Retirement You Imagined

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