OppenheimerFunds Survey of American Parents:

COLLEGE REMAINS ESSENTIAL TO THE AMERICAN DREAM, BUT FINANCIAL REALITIES PUT
DREAM AT RISK FOR MANY

College Aspirations on Par with Home Ownership, a Comfortable Retirement

Many Believe Rising Costs May Put College Beyond Reach of Most Families, But
Parents Sticking To College Savings Strategies Even During Recession

Nearly Half Have Saved Less than $5K for Kids' College Costs; Many Think "Free
Money" Will Bridge the Savings Gap

The Answers: Parents Need to Boost Savings Levels, Explore All Options; More
than Half of Parents Considering More Affordable Colleges

OppenheimerFunds Launches "CollegeWithinReach" Website With Insight, Tools,
Perspective on Savings "Solutions"

NEW YORK, May 18 /PRNewswire/ -- The American dream of college is alive and
well - but could slip beyond the reach of many families, according to the
results of a nationwide survey released today by OppenheimerFunds, Inc.

Ninety percent of 1,001 parents of pre-college age children surveyed said they
view sending their kids to college as an essential part of the American dream
-- on a par with having a comfortable retirement or owning your own home.

While better than eight of 10 (81%) said that sending their kids to college is
an achievable goal, more than half of parents at least somewhat agreed that
college is not as achievable today as it once was, and six in 10 strongly
believe that if tuition costs keep skyrocketing, college will be unaffordable
for most families.

"Despite rising costs, diminished financial resources and the toughest
economic climate in decades, the dream of college strongly endures for
American families," said Donna Winn, president and CEO, OFI Private
Investments Inc. "Americans remain powerfully committed to helping their kids
reach and stay in college.

"At the same time, good intentions won't be enough," she said. "In far too
many families, there's a disconnect between college hopes and financial
realities."

The survey reveals that while many parents are reluctant to take on college
debt, college savings are well below projected costs. Many parents also
assume that scholarship money will pay for a large part of their kids' college
costs.

"Saving for college is one of the biggest financial challenges any family can
take on," Winn said. "Now more than ever, families need help. Broad access
to higher education is critical - to our society, to our economy, and to our
ability to compete in a global marketplace. Everyone with a stake in
preserving the dream of college - families, policymakers, educational
institutions and financial services providers - must work to bring college
within reach of more Americans."

Government is seen as having a particular role to play as 80% of parents agree
- most of them strongly - that the Obama administration should make college
affordability one of its top priorities.

"At OppenheimerFunds, we take very seriously our responsibility to help
parents plan well for college - and become effective savers and investors to
meet college costs," Winn said. "We are firmly dedicated to strengthening our
college savings offerings - and to delivering insight, education and solutions
that can help ensure college remains achievable for every American family."

Americans Believe in the Value of a College Degree
Americans continue to believe in the value as well as the importance of a
college degree and are determined to send their kids to college.

Almost eight in 10 Americans (79%) agree that it's very important to obtain a
college degree. Belief in the importance of college seems to have grown.
Just 53% of Americans say their parents felt it was very important for them to
attend college.

Nearly all of the parents surveyed - 97% -- said it is somewhat or very likely
at least one of their children will attend college, including 88% who said
it's very likely at least one of their kids will attend. And, 92% intend to
send at least one of their children to a four-year college.

More than eight of 10 say that the cost of college is worth it, given the
value of a college education.

"It's not surprising that Americans value college so highly," Winn said. "A
college degree is still seen as a difference-maker, delivering a lifetime's
worth of benefits."

Asked why it was important for their kids to go to college, the factors most
frequently cited by parents were the ability to compete in the workforce
(76%), earnings power (64%), and the belief that "college is an essential part
of a satisfying and fulfilling life" (50%).

President Obama is seen as a particularly dramatic example of the value of a
higher education. Seventy-seven percent of the parents surveyed believe that
Barack Obama's election proves that a good education makes anything possible.

Costs Remain Significant Concern
But Most Families Staying the Course with College Savings Efforts
While parents believe college is still achievable, they are concerned about
the cost.

More than half (51%) say that family finances will be more of a limiting
factor than academic performance on their kids' ability to get a quality
college education. The same number say it's very likely they or their kids
will have to borrow money for college.

The issue is not likely to go away. One in four parents (24%) agrees that
space travel will be more affordable than college by the time their youngest
child reaches college age.

Encouragingly, hard times and rising costs notwithstanding, many parents are
still saving for college.

Asked about their college savings behaviors amidst the recent economic
slowdown, American parents generally have not put saving for college on hold
(60%), have not reduced the amount they are saving for college (60%), and have
not withdrawn funds from a college savings plan (92%). Concerned though they
are about cost, only about one in four (26%) say the high cost of college has
discouraged them from saving.

"These are particularly challenging times for families," Winn said. "As
admirable as these savings efforts are, the reality is that many families just
aren't saving as much as they should - especially if they want to preserve as
many college options for their children as possible."

College Hopes and Financial Realities Don't Line Up
While many parents have held the line on college savings during the economic
slowdown, the savings that parents have earmarked for college generally fall
far short of likely costs.

More than three-quarters (77%) of Americans with pre-college age kids have
saved less than $20,000 for their children's college expenses; 62% have saved
less than $10,000, and 43% have saved less than $5,000. Twelve percent have
saved nothing at all.

Parents of children closest to college - those ages 15 to 18 - are not
necessarily stronger savers. More than half (55%) of these families have
saved less than $10,000 for college, 40% have saved less than $5,000, and 13%
have saved nothing at all.

At the same time, more than half (56%) of the parents surveyed think
scholarship money will pay for a substantial portion of their kids' college
education.

While many students receive some kind of grant aid, the amounts received and
annual costs significantly differ.

According to the College Board, about two-thirds of all full-time
undergraduates nationally receive grant aid. In 2008-09, aid in the form of
grants and tax benefits averaged about $3,700 for in-state students at public
four-year colleges, compared with an average annual total cost of $14,333, and
about $10,200 per student at private four-year colleges, compared with an
average annual cost of $34,132*.

Parents Want to Minimize Kids' Financial Burden
The college cost equation has become even murkier in recent years, as parents
have come to understand the crippling effects of too much college debt. Nearly
80% say they want to cover 50% or more of their kids' college expenses - 24%
say they want to cover the full amount.

Among Americans who want to cover at least part of their kids' college
expenses, 66% say they want to do this because it's very important for their
kids to graduate college with as little debt as possible. For 87%, a very
important reason is that they would hate for their kids to have to drop out of
college for financial reasons.

More than half (52%) strongly agree that people who graduate without any
college debt have a big advantage in life. Illustrating the desire to keep
borrowing down, about eight in 10 parents want their kids to graduate with
less than $20,000 in college debt and half desire a debt ceiling for their
child of under $10,000, including 17% who do not feel that any level of debt
is acceptable. By comparison, the College Board estimates that average total
debt was about $22,700 for the approximately 60% of 2006-07 bachelor's degree
recipients who graduated with debt.**

"In recent years, parents have come to understand that college loans are an
undesirable option, burdening graduates with debt that can take decades to pay
down," Winn said. "That's all well and good - the problem is that many parents
aren't replacing over-reliance on debt with an increase in personal savings.

"The ramifications are clear: As college approaches, many parents are likely
to discover that college costs far outstrip their financial resources," Winn
said. "Parents committed to college need to begin saving as early as they can,
as much as they can, and to stick to their savings strategy as long as they
can."

Doing the Right Things
The college savings challenge notwithstanding, many parents are doing what
they can to help their children to appreciate, achieve, and succeed in higher
education.

For parents with kids age seven and older, things they're doing to a great
extent include helping their kids with homework (69%), encouraging their kids
to participate in sports, clubs and other activities (63%), and meeting with
their teachers and counselors (56%).

With kids age 13 and up, many parents are talking to kids about the importance
of education (89%) and encouraging them to have outstanding performance in
school (85%).

Unfortunately, electronic pastimes are still a powerful force in many homes.
Just 28% of parents with kids age seven and older say they are limiting
distractions like TV and video games to a great extent, in order to help get
their kids ready for higher education.

Hispanic Parents Have Strong College Aspirations
The nation's Hispanic children also are coming of age in households with
deeply held hopes for college, according to the OppenheimerFunds poll, which
surveyed a separate sample of 325 Hispanic parents of pre-college age children
nationwide.

Ninety-five percent of Hispanic parents said they view sending their kids to
college as an essential part of the American dream.

But in some ways Hispanic families are even more optimistic about the dream
than non-Hispanics; 72% agreed that college is within reach for everyone who
wants to go, compared with 63% of non-Hispanics.

At the same time, Hispanic parents, like parents nationally, are facing
challenges saving for college. Nearly nine in 10 (86%) of those surveyed had
saved less than $20,000 for college, more than half (54%) had saved less than
$5,000, and one-quarter had saved less than $1,000. Twelve percent of
Hispanic families had saved nothing at all.

Just 9% of Hispanic families have saved $20,000 or more for college, compared
with 20% of non-Hispanic families.

However, more than eight of 10 Hispanic parents agree (and 47% strongly agree,
compared with 39% of non-Hispanic parents) that the cost of college is worth
it, given a college education's value, and most have not cut back on college
savings efforts due to the current recession.

Weighing Costs Carefully
To better manage the cost side of the equation, many parents are scrutinizing
college costs. "More and more parents understand that there are worthy
educational choices all along the price scale," Winn said. "More expensive
does not necessarily mean better."

More than half (57%) of parents say they are considering or planning to
consider more affordable colleges due to the economic slowdown. Eighty-two
percent are willing to have their child go to a community college for two
years before they attend a four-year school.

One set of costs parents could clearly do a better job scrutinizing is their
own discretionary spending on things like eating out and entertaining. Just
25% say they have done so to a great extent in an effort to help get their
kids to college.

Key to Focus on "Best Practices," Long Term Planning
Focusing on the basics can make a big difference when it comes to preparing
kids for college, financially and otherwise.

"Many families are already taking the critical first steps down the road to
college: from getting involved in their kids' education, to encouraging their
kids to make the most of their primary and secondary school years, to
instilling an appreciation of the importance of education," Winn said. "These
'best practices' support the belief that college is both possible and well
worth pursuing. While these parenting skills are admirable, there is no
question but that parents could be doing better on the savings front."

For many Americans, Section 529 college saving plans have emerged as an
excellent way to save and invest, as contributions grow tax deferred and
withdrawals are federal tax free when used for qualified expenses.

Parents who have used 529 plans are twice as likely as those who have not (31%
vs. 16%) to have saved at least $20,000 for their kids' college education, and
more likely to say they plan to cover 50% or more of their kids' college
expenses (90% vs. 75%). And, parents who have used the plans are less likely
to say that the high cost of college has discouraged them from saving (12% vs.
30%) or that family finances will be more of a limiting factor than academic
performance for their kids' ability to get a quality college education (40%
vs. 55%).

While 61% of those surveyed are at least somewhat familiar with college
savings plans, usage is still relatively low; only about one in four (24%) of
parents say they have used a 529 plan.

"Our poll suggests that many Americans may be well advised to consider 529
plans," Winn said. "The plans can help to support more effective college
savings and bolster college hopes."

It's evident as well that many families could use help understanding how to
fit saving for college into an overall family financial strategy that
addresses multiple goals.

Nearly half of parents (46%) polled by OppenheimerFunds said that it's more
important to save for a college education than retirement because "I can
always put off my retirement, but my kids can't put off college."

"Many parents are committed to college saving - and commitment is a vital part
of any effective savings plan," Winn said. "But it's critical as well not to
lose sight of the family's other savings priorities.

"With or without the help of a professional advisor, comprehensive, long term
planning can help open up avenues for families to better anticipate and seek
all of their deeply held life hopes - not least, the dream of a college
education, " Winn said.

For parents seeking help with college savings strategies, OppenheimerFunds has
launched an educational Website, www.collegewithinreach.com. Designed to help
parents devise practical solutions for the college cost challenge, the Website
offers articles, expert advice, and timely research on all aspects of planning
for college. It features a "College Prep Profile" questionnaire, a quick and
easy-to-use interactive tool that allows parents to compare their college
planning activities with the national poll results.

* * *

About the Survey:
The OppenheimerFunds poll was conducted via telephone between February 2 and
26, 2009 by the national polling firm Mathew Greenwald & Associates. To
qualify for the study, respondents had to be parents of a child age 18 or
younger who is not currently attending college. The margin of error at the
95% confidence level for the entire sample of 1,001 is plus or minus 3.1
percentage points. The margin of error at the 95% confidence level for the
Hispanic sample of 325 parents is plus or minus 5.5 percentage points. Thirty
two parents in the national sample and seven parents in the Hispanic sample
indicated that it was not likely or they were unsure their children would
attend college in the future; these parents did not respond to the poll's
specific questions about college planning behavior and savings levels.

About OppenheimerFunds, Inc.:
OppenheimerFunds, Inc. (OFI) is one of the nation's largest and most respected
asset management companies.

OFI has been helping investors achieve their financial goals since 1960. OFI
and its affiliates offer a broad range of products and services to
individuals, corporations and institutions, including mutual funds, separately
managed accounts, investment management for institutions, hedge fund products,
qualified retirement plans and sub-advisory investment-management services.

OppenheimerFunds is widely recognized as a leader in educating and empowering
investors and for its award-winning customer service.

About OFI Private Investments Inc.:
OFI Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds, Inc.,
helps individuals, institutions and nonprofit organizations work toward their
financial goals by offering a diverse range of tailored investment products
and services, including investment management services for 529 college savings
and prepaid plans. Currently, OFIPI-managed college savings plans are offered
in Illinois, Nebraska, New Mexico, Oregon and Texas.

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

Investments in 529 college savings plans are neither FDIC insured nor
guaranteed and may lose value. Please note the plan's disclosure document
includes details such as investment objectives, risks, charges and expenses,
and other information that you should read and consider carefully before
investing.

*2008-09 College Prices: Keep Increases in
Perspectivehttp://www.collegeboard.com/parents/csearch/know-the-options/21385.html;
http://professionals.collegeboard.com/profdownload/trends-in-college-pricing-2008.pdf

**http://professionals.collegeboard.com/profdownload/trends-in-student-aid-2008.pdf

SOURCE OppenheimerFunds, Inc.

Jim Marren, +1-212-358-8515 ext. 2; Traci Ayer, +1-212-358-8515, ext. 3, both
of Tiller, LLC; or Andrew Healy, OppenheimerFunds, Inc., +1-212-323-0325