NEFE to Provide Primary Support, Thought Partnership
DENVER—The University of Chicago Becker Friedman Institute for Economics (BFI) and the Stanford University Initiative for Financial Decision-Making (IFDM) are partnering with the National Association of State Treasurers (NAST) through its education savings network the 529 Network, with support from the National Endowment for Financial Education (NEFE), to launch a new consortium dedicated to advancing research on public understanding of 529 education savings plans and related financial education and education access initiatives.
The National Consortium on Education Savings Research (529 Consortium) is a multi-institution research partnership designed to increase understanding of and participation in education savings plans, especially among underserved and underrepresented families. The 529 Consortium brings together leading researchers, state treasurers and other state sponsors, and program administrators to build integrated data infrastructure and conduct policy-relevant research on education savings initiatives. Five states serve as founding partners: Illinois, Maine, Pennsylvania, Utah and Virginia. The consortium is convened by NAST and receives primary support and thought partnership from NEFE. Investment manager Vanguard and program manager Ascensus provide data support, thought leadership and expertise.
The effort was first proposed by Illinois State Treasurer Michael Frerichs while he served as president of NAST and is inspired in large part by the striking results from recent research by University of Chicago economists John List and Guglielmo Briscese (now a director at Vanguard) along with Sabrina Liu of the University of Chicago Inclusive Economy Lab, who analyzed more than 900,000 Illinois 529 accounts to reveal how financial literacy gaps limit 529 enrollment, and, as a result, college and post-graduate enrollment.
“What surprised us most wasn’t the income gap, it was the perception gap,” said John List, Kenneth C. Griffin Distinguished Service Professor in Economics at the University of Chicago and BFI director. “Sixty-one percent of parents who could save enough to cover half of college costs don’t think their contributions are meaningful. That’s not a resource problem, it’s an information problem, and it’s exactly what a research consortium built around rigorous, multi-state data can solve.”
The 529 Consortium is organized around three core research aims. First, it will build integrated data infrastructure to connect administrative records from multiple states and plan administrators to enable rigorous evaluation of 529 programs at scale. Second, it will generate policy-relevant research addressing questions critical to state policymakers, including: Which families are using 529 plans? What drives participation and savings behavior? How do plan design features influence outcomes? Third, the consortium will disseminate findings directly to policymakers, program administrators, educators and families, translating research into actionable guidance that improves plan design, boosts participation and strengthens financial literacy outcomes.
The 529 Consortium builds on a body of research connecting financial literacy to economic outcomes. Stanford IFDM’s professor Annamaria Lusardi has shown that fewer than 30% of Americans can correctly answer three basic financial questions. Those who answer the questions correctly are more likely to save, invest and grow wealth. Research suggests that expanding 529 participation requires not only better plan design, but also targeted interventions that address the behavioral and knowledge barriers limiting enrollment.
“There is an urgent need to democratize access to financial education,” said Lusardi, faculty director of the Stanford IFDM. “Even basic financial knowledge equips individuals to manage their money, save for the future and weather economic shocks. The 529 Consortium gives us the infrastructure to understand why so many families are being left behind, and what we can do about it.”
The consortium operates under formal governance structures designed to ensure research independence, data security and accountability. A steering committee, comprised of representatives from each founding state, as well as from UChicago BFI, Stanford IFDM, NEFE, NAST, Ascensus and Vanguard, provides oversight and strategic direction. A specialized data integrity, access and use committee safeguards participant privacy and research integrity. A newly formed standing committee on communications and dissemination ensures findings reach their intended audiences. This governance model, informed by the success of the Consortium for Chicago School Research, balances academic rigor with practical responsiveness to policymaker needs.
The five founding state partners represent some of the largest and highly-rated 529 plans in the nation, with a combined $192 billion saved across more than 4.9 million accounts. Vanguard, a leading 529 investment manager, and Ascensus, the nation's largest independent 529 recordkeeper and administrator, bring operational expertise and data resources essential to the consortium's research agenda. Together, the consortium partners administer a substantial share of the nation's 529 accounts, giving researchers direct visibility into how plans function in practice, under governance protocols that keep the research agenda independent of any partner's commercial interests.
The 529 Consortium will make its public debut on June 18, 2026, at the NAST Treasury Management Training Symposium in Oklahoma City, where founding state 529 sponsors and research leadership will present the initial research agenda to the broader 529 plan community. Data collection and preliminary analyses are expected to begin later in 2026.
About the partnering organizations:
National Consortium on Education Savings Research (529 Consortium)
The 529 Consortium is a multi-institutional research partnership dedicated to advancing understanding of education savings programs, with a particular focus on 529 plans. Through integrated data infrastructure, rigorous research and broad dissemination of findings, the 529 Consortium works to improve program design, increase participation among underserved families and strengthen financial outcomes. The consortium is co-hosted by the University of Chicago Becker Friedman Institute for Economics (BFI) and the Stanford Initiative for Financial Decision-Making (IFDM), convened by the National Association of State Treasurers through the 529 Network, and primarily supported by the National Endowment for Financial Education.
University of Chicago Becker Friedman Institute for Economics
UChicago’s Becker Friedman Institute for Economics (BFI) serves as a hub for cutting-edge analysis and research across the entire University of Chicago economics community, uniting researchers from the Booth School of Business, the Kenneth C. Griffin Department of Economics, the Harris School of Public Policy and the Law School in an unparalleled effort to uncover new ways of thinking about economics. BFI puts those ideas into action by translating rigorous research into accessible and relevant formats and proactively disseminating it to key decision makers around the world.
Stanford Initiative for Financial Decision-Making
Stanford Initiative for Financial Decision-Making (IFDM) synthesizes research, education, technology, policy and programs to democratize access to financial education. IFDM is a collaboration among the Stanford Graduate School of Business (GSB), the Stanford Institute for Economic Policy Research (SIEPR) and the Stanford Department of Economics in the School of Humanities and Sciences.
National Association of State Treasurers
The National Association of State Treasurers (NAST) provides advocacy and support that enables member states to pursue and administer sound financial policies and programs benefiting the citizens of the nation. Membership is composed of all state treasurers or state finance officials with comparable responsibilities from the United States, its commonwealths, territories and the District of Columbia. The private sector is represented through the Corporate Affiliate Program that was established to build professional relationships and foster cooperation between the public and private sectors. The association serves its members through educational conferences and webinars, a variety of working groups, policy advocacy and publications that provide information about developments in public finance.
National Endowment for Financial Education
The National Endowment for Financial Education (NEFE) champions effective financial education. NEFE is the independent, centralizing voice providing leadership, research and collaboration to advance financial well-being. As one of the first organizations to embark on the mission of wholly dedicating its efforts on improving the effectiveness of financial education, NEFE continues its legacy of strengthening action-oriented research agendas, mobilizing intermediaries, and creating better solutions for researchers, educators, practitioners and policymakers.
Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice and retirement services to tens of millions of individual investors around the globe—directly, through workplace plans and through financial intermediaries. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly and to give them the best chance for investment success.
Ascensus
Ascensus is the engine at the center of America’s savings ecosystem. The company makes saving easier by bringing together intuitive technology, AI and high-touch service that supports better financial outcomes for savers, small- to mid-sized businesses, state governments and leading financial institutions. Ascensus offers comprehensive qualified and nonqualified retirement plan solutions, third-party retirement plan administration, 529 education and ABLE savings program administration, corporate- and bank-owned life insurance solutions, as well as fiduciary and total rewards services.The company supports over 16 million savers, oversees $913+ billion in assets under administration and employs more than 5,000 associates as of March 31, 2026.
About the programs from the founding states:
Illinois
The Illinois 529 plans include Bright Start 529, a Morningstar Gold-rated, direct-sold plan, and Bright Directions 529, an advisor-sold plan. Administered by Illinois State Treasurer Michael Frerichs, the programs help more than 500,000 students save more than $24 billion, with over $6.7 billion being used to pay for higher education expenses since 2000.
Maine
Maine’s NextGen 529, with more than 500,000 accounts and $18 billion in assets, takes a grant-forward approach to expanding college savings access for Maine families. Since 2013, every baby born a Maine resident receives a $500 Alfond Grant from the Alfond Scholarship Foundation toward future higher education expenses. The Finance Authority of Maine provides four additional grants—including a financial wellness incentive—that can add three one-time $100 grants in additional support and a 30% matching grant, up to another $300 in annual match.
Pennsylvania
Pennsylvania’s 529 College and Career Savings Program, administered by Treasurer Stacy Garrity, offers a Guaranteed Savings Plan that locks in tuition rates at today’s prices and an Investment Plan with three consecutive Morningstar Gold ratings. Families have nearly $10 billion invested for future education across more than 337,000 accounts. Its Keystone Scholars program has created more than 895,000 accounts since 2019, providing a $100 scholarship for every child born in the state, now totaling more than $95 million in assets.
Utah
FFor 15 years in a row, Utah’s my529 has earned Morningstar’s top rating as one of the country’s top 529 educational savings plans. The program manages more than $31 billion across 650,000 accounts. With my529’s new incentiFive program, Utah families can plan for their child’s future by contributing just $100 a year for five years to unlock up to $929 in special incentive contributions.
Virginia
Virginia’s Commonwealth Savers’ highly rated Invest529 and CollegeAmerica programs comprise the largest 529 plan in the country with over $125 billion in assets under management and 3.25 million accounts, helping millions of families plan and save for future education expenses. Virginia’s Commonwealth Savers also supports an extensive group of education access and affordability partners and initiatives through its SOAR Virginia program, which provides services to more than 68,000 Virginia students annually, with direct coaching support to some 24,000 students and more than $3.8 million in annual scholarship support.
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