WASHINGTON – Assets in 529 college savings plans rose to an estimated $75.1 billion at the end of the first quarter of 2006, up 38% from $54.5 billion in the same quarter one year ago, according to the College Savings Foundation.

Section 529 college savings plans, which are offered on a state-by-state basis, give federal income tax-free treatment to earnings and distributions made from plan accounts used for qualified higher education expenses. Estimated net sales during the first quarter were $5.1 billion, the largest single quarter net sales total on record, according to CSF. The Financial Research Corp. compiled the data for CSF.

The fastest-growing category of portfolios was the "Static" portfolio, which features permanent underlying investments, such as a target-risk or a specific asset-class portfolio.