Resulting in approximately $310,000 in savings to families across the Investment Plan
Harrisburg, PA - Pennsylvania Treasurer Joe Torsella announced today a further reduction in fees for the PA 529 College and Career Savings Program Investment Plan (IP). This most recent reduction keeps IP fees at some of the lowest levels when compared to similar plans in other states.
“Keeping PA 529 fees as low as possible helps make sure families’ hard-earned dollars are there to cover education costs for their children. Offering affordable savings options for families ensures more of our children will enter the workforce without crushing student loan debt. Here at Treasury we work tirelessly to make sure Pennsylvania’s families have access to the best tools possible to help them save for postsecondary education costs.”
Pennsylvania Treasurer, Joe Torsella
Treasury is reducing fees for PA 529 IP account holders by one basis point (0.01%) and plans further reductions as the plan’s assets increase to certain thresholds. This reduction results in approximately $310,000 in savings across the IP.
The PA 529 IP offers account owners 17 investment options with varying risk to choose from through Vanguard. The PA 529 College and Career Savings Program also offers the Guaranteed Savings Plan (GSP)—a lower-risk option allowing account holders to save for tomorrow’s tuition rates at today’s prices. IP investment returns are based on market performance, while GSP returns are based on tuition increases.
Pennsylvania families currently have $5.2 billion in assets invested in the IP and GSP plans combined, with $3.1 billion in the IP alone.
The PA 529 College and Career Savings Program has been helping Pennsylvania families save and pay for postsecondary expenses for more than 25 years. Over the life of the program, it has paid out more than $962.1 million for qualified postsecondary education expenses. PA 529 account holders receive tax benefits including contributions that are deductible from PA state income taxes and account balances that are exempt from the state inheritance tax. Assets in a PA 529 do not count against families when determining state financial aid eligibility.