It’s no secret that I’m a big fan of college funds. I’ve mentioned more then once that I had a college fund before I was born, thanks to my wonderful parents. I can’t imagine how different and debt-ridden my life would be without it. That’s why I was very excited to read today that 52 percent of parents are still–in spite of the economy–saving the same amount or more for their children’s future.The same study found that 92 percent of parents overwhelmingly expect their children to pursue post-secondary education. 48 percent plan to pay for most or all of the cost. What great news! From Gallup and Sallie Mae, the study came out on 529 College Savings Day, in honor of the 529 savings plan.

Dept. of Education: Speaking of Sallie Mae…
The U.S. Department of Education has just chosen Sallie Mae to help the Federal Student Aid Title IV Student Loan Management/Servicing program. Sallie Mae and three other companies will be servicing $550 billion in loans that are owned by the Dept. Education.

I’ll admit, I’m a little gun shy about moving loans around because of the recent economic situation. Call me skeptical, but is Sallie Mae really a sound choice? Moody’s Investor Services recently rated Sallie Mae’s debt non-investment grade. This rating implies substantial credit risk and generally maintains the negative outlook for the company. While it’s true that this rating is a slight improvement from Sallie Mae’s previous rating, do we really want the government teaming up with them?

At least their hearts are in the right place.