As tuition is due, parents' 529 plans will be depleted.

By The Exchange Team

It's that time of year for college dorm shopping and packing the kids' belongings. It also entails paying tuition and other fees.

Due to market volatility, some parents using 529 plans to cover college tuition may have faced substantial losses.

This year, the bond market and stocks fell, eroding buffers in many portfolios, including 529 plans.

Bond market carnage and stock market losses will ruin many 529 plan balances - CFP Jim Mahaney

Depending on design of their 529 plan, that forces parents to withdraw after losses or seek other payment options for this semester.

529 plans are state-sponsored qualifying tuition programmes for college or elementary/high school tuition.

What are 529 plans?

529 plans are state-sponsored qualifying tuition programmes for college or elementary/high school tuition.