Savings Failure: American College Savers Get a ''D''

OFI Private Investments College Savings Confidence Index
highlights overall lack of knowledge and confidence in meeting savings
goals
NEW YORK--(Business Wire)--
While American families aspire to robust college savings goals,
the reality is that most are failing to come close to meeting their
personal savings needs, according to new research from OFI Private
Investments, a subsidiary of Oppenheimer Funds.

The first annual OFI Private Investments College Savings
Confidence Index(R) reveals that less than one-third (32 percent) of
American families who are currently saving for their child's college
education have confidence in achieving their college savings goals.
The OFI Private Investments College Savings Index(R) measures
consumers' stated beliefs--as well as actual behaviors--to provide an
annual grade and consistent year-to-year evaluation of college savings
confidence. The research, which was conducted by Cogent Research,
compares the knowledge and goals of "Savers" (those currently saving
for college) versus "Future Savers" (those who plan to begin saving
for college in the future).

In the benchmark first year of this Index, Savers received a grade
of "D", while Future Savers received an "F." The Index also reveals
that only three percent of U.S. households currently have enough saved
to pay for college.

"We developed this Index to more accurately display the 'reality
gap' that exists for families as they struggle to make the dream of a
college education a certainty," said Raquel Granahan, director of 529
College Savings Plans for OppenheimerFunds. "529 college savings plans
represent a genuine example of this gap. Despite the many benefits of
this savings vehicle, a staggering number of Americans are simply not
taking advantage. Now is the time for state-sponsored plans and
financial services firms to reconsider their approach and more
aggressively educate the American consumer about 529 plans and other
savings options. The failing grade shown in the Index is simply not
acceptable."

The College Savings Confidence Index examined households who are
currently saving for college and those who intend to do so in the
future in an effort to identify the common perceptions and attitudes
of each group, as well as the variance in each group's familiarity
with savings options. While Savers are clearly more knowledgeable
about their options than Future Savers, The College Savings Confidence
Index reports that both sides are not fully educated, especially with
regard to 529 Savings Plans. For example:

-- Only 51 percent of Savers currently or intend to use a 529
plan

-- For Savers, 529 plans account for only about one-fifth of
actual college savings

-- Well less than half of Future Savers (40 percent) intend on
using a 529 plan

-- 56 percent of Future Savers claim that they could "not explain
a 529 plan at all to a colleague or a friend"

To meet the needs of both Savers and Future Savers, the research
suggests the following steps will be critical to savings growth,
especially within 529 plans:

-- Online enrollment

-- Lower minimums

-- Better plan Web site content & layout

-- Fewer investment choices combined with clear benefits

"This Index reveals that the American public is hungry for
accurate and comprehensive education about college savings," said
Granahan. "The silver lining is that the majority of Americans view
college savings as a top priority and realize that it will take a
dedicated effort to meet their goals. Proper education, expert
guidance and a variety of financially sound options represent the keys
to improving the grades of both savers and future savers."

Savers and Future Savers differ significantly in three main areas:
income, awareness of college savings programs and options, and
confidence in their ability to meet college savings goals. Household
income and education levels are the most readily identified barriers
to active planning and saving, but not the only ones. While the survey
suggests that current savers have more resources, it also reveals a
better awareness and understanding of the available product options
and their benefits. Savers rank saving for college as their top
investment priority, even greater than retirement, while Future Savers
rank college savings slightly behind retirement savings.

"It is clear that most Americans are frustrated when it comes to
college savings," said Bruce Harrington, managing director of Cogent
Research. "The vast majority of American families realize the
importance of saving for a college education, and they are certainly
not naive about how significant an investment this will be. However,
there is an alarming lack of awareness of college savings options.
Simply put, people are unfamiliar with all the tools that are
available to them, and how these tools can help them set and achieve
their goals."

For advisors, the data reveals that there is a significant pool of
liquid assets earmarked for college expenses currently sitting in
non-maximized savings vehicles such as checking and savings accounts.
Considering the intents, attitudes and perceptions of American
households, this reveals a true opportunity for advisors. For example:

-- More than 90 percent of US households with college bound
children expect to pay at least some of college tuition

-- 54 percent of Future Savers intend to start saving in the next
12 months

-- Savers who do not currently have a 529 plan have almost half
of their savings in traditional savings accounts

For a full white paper on the College Savings Index, or graphs to
support the above data, please visit www.oppenheimerfunds.com.

About OFI Private Investments

OFI Private Investments, Inc a subsidiary of OppenheimerFunds,
Inc. offers the full spectrum of investment options from a range of
equity and fixed income products to alternative investments and
multi-disciplinary programs.

Backed by the distribution strength of its parent company
OppenheimerFunds, Inc., a recognized and trusted partner in the
financial services industry, OFI Private Investments draws on the
experienced investment teams of OppenheimerFunds, OFI Institutional
Asset Management and other controlled affiliates within the Mass
Mutual Organization to help clients meet their long-term investment
needs.

About OppenheimerFunds, Inc.

OppenheimerFunds, Inc. is one of the nation's largest and most
respected investment management companies. At December 31, 2007,
OppenheimerFunds, Inc., including subsidiaries and controlled
affiliates, managed more than $260 billion in assets, including mutual
funds having more than 6 million shareholder accounts.

The products and services of OppenheimerFunds, Inc. and its
controlled affiliates include: mutual funds, hedge funds of funds,
qualified retirement plans for individuals and corporations,
investment management for institutions and sub-advisory services.
OppenheimerFunds is widely recognized as a leader in educating and
empowering investors and for its award-winning customer service.

Investments in 529 college savings plans are neither FDIC insured
nor guaranteed and may lose some value. Some states offer favorable
tax treatment to their residents only if they invest in the state's
own plan. You should consult your tax advisor. Before investing in a
plan, investors should carefully consider the investment objectives,
risks, charges and expenses associated with municipal fund securities.
Plan disclosure documents contain this and other information about a
plan, and may be obtained by asking your financial advisor, by
visiting our website at www.oppenheimerfunds.com or by calling
1.800.525.7048. Investors should read these documents carefully before
investing.

Shares of mutual funds are not deposits or obligations of any
bank, are not guaranteed by any bank, are not insured by the FDIC or
any other agency, and involve investment risks, including the possible
loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should
carefully consider a fund's investment objectives, risks, charges and
expenses. Fund prospectuses contain this and other information about
the fund, and may be obtained by asking your financial advisor,
calling us at 1.800. 525.7048 or visiting our website at
www.oppenheimerfunds.com. Read prospectuses carefully before
investing.

About Cogent Research

Cogent Research helps clients gain clarity, obtain perspective,
and formulate direction on critical business issues. Founded in 1996,
Cogent provides custom research, syndicated research products, and
evidence-based consulting to leading organizations in the financial
services and life sciences industries. Through quality research,
advanced analytics, and deep industry knowledge, Cogent Research
delivers data-driven solutions and strategies that enable clients to
better understand customers, define products, and shape market
opportunities in order to increase revenues and grow the value of
their products and brands.

The Castle Group (for Cogent Research)
Mike Trainor, 617-337-9534
mtrainor@thecastlegrp.com
or
OppenheimerFunds, Inc.
Jeaneen Pisarra, 212-323-5178
jpisarra@oppenheimerfunds.com

Copyright Business Wire 2008