Despite the ailing economy, more than half (52 percent) of parents are saving the same amount or more for college, according to a national study of parents from Sallie Mae and Gallup on "How America Saves for College." In addition, parents overwhelmingly expect their children to pursue higher education (92 percent) and half (48 percent) plan to pay for most or all of the cost.

In fact, 62 percent of parents of college-bound children are saving for education, trailing only retirement as a savings priority. Fourteen percent of parents reported saving the most for their children’s college, second to 27 percent who save the most for retirement. For nearly half (46 percent) of parents, saving for college ranks in their top three savings priorities.

The study also found that many parent responses demonstrate a lack of awareness about when to start saving, how much to save, and which college savings vehicles they should consider.

"It is clear that parents value the investment of a higher education for their children, and it is encouraging that so many are saving for that investment even in today’s tough economic times," said Joe DePaulo, executive vice president, Sallie Mae. "Still, more families can benefit from the saving-for-college tools available, and we are committed to helping families develop a comprehensive, save, plan and pay strategy to make college not just a dream, but a reality."

A higher number of Hispanic parents intend to pay for all of the cost of their children’s college (20 percent of Hispanic parents, compared to 15 percent of white parents and 6 percent of African-American parents). Hispanic parents also are the most likely to be confident in their ability to save their goal amount - 54 percent indicated they are extremely or somewhat confident, compared to 44 percent of white parents and 31 percent of African-American parents.

Although the nation’s personal savings rate has risen to the highest it’s been in six years, only 5 percent of families have increased their college savings, compared to 18 percent who have increased their general savings and 12 percent who have increased retirement savings.

Nearly four out of 10 parents of college-bound children are not putting any money aside for college. Among the reasons they gave for not saving were that they don’t have enough money (62 percent), they are focusing on other savings priorities (49 percent), they expect their child to qualify for scholarships (35 percent), or they haven’t gotten around to starting a savings plan (34 percent).

The study also finds that parents use a variety of methods to save for college, but many are missing the tax-advantaged opportunities available for college savings such as 529 college savings plans, are not contributing automatically, and are not using a rewards program to earn additional savings for college. For example, only 33 percent save through a 529 plan, which enables education savings to grow free of federal income tax, and only 14 percent of parents report using a college savings rewards program that allows them to save money for college simply through smart spending.