With market upheaval and the credit crunch hitting many savings plans and restricting the availability of loans, many people are finding it tougher to fund their education. Nevertheless, there are still a number of good options for building up a college fund.

According to MarketWatch, those with long-term horizons can invest in 529 plans, which despite recent stock market turmoil continue to deliver tax-free gains on investments if the money is used for "qualified education expenses".

Figures from Morningstar show that while these plans have been affected by short-term uncertainty - dropping 6.09% over the 12 months to August 31st - they still show long-term gains, having risen 6.06% over the last five years.

Furthermore, although fewer lenders are now participating in the federal and private student loans market, the government has shored up its program and increased the annual unsubsidized loan amount for some students to $2,000.

Dave Kennedy of CollegeZapps told the site that students can also increase their financial aid options by applying to more schools, talking to family members about matching contributions to a savings plan and contacting schools' financial aid offices for information on grants, loans and scholarships.

According to the National Center For Education Statistics, the most popular degree subject in the US is business administration, accounting for 22% of all majors in 2004-05.