State Treasurer Joe Torsella Wednesday announced PA 529 Guaranteed Savings Plan account holders will see a fee reduction as the result of Treasury renegotiating contracts with its record-keeper, Ascensus.
“Tuition costs continue to rise, forcing Pennsylvania graduates to carry the highest level of student loan debt in the nation,” said Torsella. “While the Guaranteed Savings Plan is a great way to lock in tomorrow’s tuition at today’s prices, that doesn’t mean the program shouldn’t still improve. That’s why I’m proud to keep fighting for lower fees, so that Pennsylvania families can save even more for their children’s future.”
Treasury is reducing the asset-based fees by four basis points for PA 529 GSP account owners that receive account documents through the mail and by five basis points for those who have established electronic delivery, a reduction of 9 percent and 14 percent, respectively.
Over the life of the five-year contract, Treasury projects that savings will be approximately $3.6 million for Pennsylvania families.
The Pennsylvania 529 College Savings Program provides one of the best ways to save for education through two distinct plans – the PA 529 Guaranteed Savings Plan and the PA 529 Investment Plan.
The PA 529 GSP is a simple, lower-risk way to save for tomorrow’s post-secondary expenses at today’s rates.
Account holders that save enough for a semester at a post-secondary institution rates today, will have enough for a semester at that school in the future – no matter when or how much tuition has gone up in the meantime.
The PA 529 IP provides the account holder with the ability to select from a list of 15 investment options from Vanguard, one of America's largest financial service companies. Funds range from conservative to balanced to aggressive in their investment approaches.
PA 529 IP returns are based on financial market performance, whereas PA 529 GSP returns are based on tuition increases.
Current and future college students in Pennsylvania have over $4.6 billion saved for higher education, between both PA 529 College Savings Plans.
To learn more about the PA 529 College Savings Program, or to open an account, please visit PA529.com.
