BOSTON, August 26, 2026 – New research from Fidelity Investments and the Massachusetts Educational Financing Authority (MEFA) reveals more parents in Massachusetts than ever before are planning to cover the full cost of their children’s college education. The firm’s biennial College Savings Indicator study found 42% of parents plan to cover the full cost of their children’s college education, up from 31% in 2024. Even among parents who only plan to cover a portion of the cost, the amount they plan to cover is 53% on average, up from 48% in 2024. Those parents have lower expectations for how much they expect their children to cover – 42%, down from 47% in 2024.
“Parents recognize the value of higher education and are making a real effort to save for it,” said Thomas Graf, Executive Director of MEFA. “While many families still have ground to cover to reach their savings goals, starting early is one of the most powerful steps they can take. Through the U.Fund and incentive programs like BabySteps and NextSteps, we’re helping families take that first step sooner, giving their savings more time to potentially grow and helping them prepare for future education costs with greater confidence.”
Massachusetts Parents Doubling Down on College Savings, but Still Have Ground to Cover
Even as the average cost of a four-year degree continues to climb1, nearly 8-in-10 parents (77%) agree the value of a college education is worth the cost. That confidence in the long-term value of higher education is translating into action, with more families actively setting aside funds for college. More than three quarters (77%) of parents have started saving for their children to go to college, up from 74% in 2024, and 39% have started saving in an account dedicated to college savings. Parents report saving around $14,000 a year toward their children’s college education on average. Among those who haven’t started saving yet, the top three barriers are having other more pressing priorities (76%), not being sure if their children will pursue higher education (38%), and not knowing how much to save (37%).
Despite setting lofty savings goals, many families in Massachusetts continue to face challenges in translating those amibitions into reality. Less than half (43%) of parents who plan to cover at least some of the cost of college and have started saving are on track to actually meet those goals. On average, parents hope to pay for 70% of their children’s education, and are on track to meet 58% of that goal. While they’re closer to their goal than in past years, many families will still need to find ways to make up for that shortfall. Fortunately, there are a variety of planning tools, savings programs, and educational resources available to help families bridge the remaining savings gap.
As the state administrator of the U.Fund 529 College Investing Plan, MEFA provides families with free college planning tools and resources at mefa.org. In addition to offering valuable federal and Massachusetts tax advantages, the U.Fund helps families start saving early through BabySteps, which provides eligible Massachusetts children with a $50 deposit when an account is opened within one year of birth or adoption. Families with children ages one to three who did not receive the BabySteps seed deposit may be eligible for the new NextSteps program, which offers a one-time $50 matching contribution to an eligible U.Fund account.
1College Board’s Trends in College Pricing 2025
529 Owners Saving More Each Month
As more families look for tax-advantaged ways to save, 529 college savings account continue to emerge as an attractive option. Nearly half (44%) of Massachusetts families surveyed have set up a 529 account, up from 39% in 2024. Seventy-one percent of Massachusetts 529 owners report contributing regularly to their 529 accounts and save around $19,000 per year. By comparison, 67% of those who save, but do not use a structured plan, report saving regularly and have annual savings of around $8,000. Massachusetts parents saving in a 529 are also much more likely to have a financial plan in place to meet their college goals.
“The data consistently shows that families who choose to save in a dedicated college savings account are able to make more meaningful progress toward their goals,” said Amanda Verstegen, SVP, Head of Savings & Lending at Fidelity. “Establishing an account like a 529 early on can give families a powerful leg up that can help them turn their aspirations into reality.”
Student Debt Experience Driving Parents to Save More Aggressively
Parents in Massachusetts continue to worry about how student loan debt might impact their children’s future and many appear determined to help them avoid the financial tradeoffs they had to make themselves. Nearly 9-in-10 (88%) of parents say their own student debt is motivating them to help their kids save more for college. More than half of parents (55%) say paying off their loans delayed them from starting to save for retirement, and 49% say their loans hindered their ability to save for their children’s college education. Together, these findings suggest many parents are seeking to turn lessons learned from their own financial journeys into greater opportunities for the next generation.
Parents Weighing the Potential Impact of AI
Beyond financing concerns, parents are also considering how broader economic and technological trends might shape their children’s futures. Seventy-four percent of parents in Massachusetts believe artificial intelligence (AI) will influence which major their children choose for college. Nearly half (47%) think AI will make some jobs obsolete or more difficult to get, while 32% believe it will increase available job opportunities. Even amid uncertainty about how AI might shape future careers, most parents continue to view higher education as a worthwhile investment.
Need assistance with your college planning or help opening a U.Fund College Investing account? Fidelity and MEFA can help.
- Learn more about how to approach college planning at Fidelity’s College Planning Resource Center.
- Find tools and resources to understand the true cost of student loan debt at Fidelity.com/StudentDebt and explore MEFA’s tips for managing loan repayment.
- Access support by visiting a Fidelity Investor Center near you or call (800) 544-2776 for access to dedicated U.Fund representatives to begin saving for your child’s education.
- Sign up for MEFA emails, subscribe to the MEFA Podcast, or register for a MEFA webinar for the latest expert information about how to save for college.
About MEFA
MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, chapter 15C. MEFA’s mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, competitive education loans, and expert guidance. All MEFA’s work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more.
