Ohio Tuition Trust Authority
10/27/2021 | Press release | Distributed by Public on 10/27/2021 13:27
Ohio’s 529 Direct Plan Fees Have Been Reduced
Ohio's 529 Plan, CollegeAdvantage, strives to keep our fees as low as possible so you can save even more. This is why we are pleased to announce that the fee charged by Vanguard, one of Ohio Direct 529 Plan's partners, has been reduced by half a basis point from 1.5 bps to 1.0 bps (0.015% to 0.01%). Also, Ascensus College Savings, the program record-keeper for Ohio Direct 529 Plan, has reduced their fee by half a basis point from 10 bps to 9.5 bps (0.10% to 0.095%.) This reflects a full basis point reduction in the overall fees for Ohio's 529 Plan. This reduction went into effect on October 1, 2021.
The fee reduction will have an impact on all of our investment options except for our banking products offered through Fifth Third Bank. The banking products are not charged any record-keeping fees. This fee reduction was made possible due to growth in Assets Under Management (AUM) for Ohio Direct 529 Plan reaching a level that triggered contract-specified price reductions. As of September 30, 2021, Ohio's 529 Program oversees over $15.93 billion in AUM within 670,780 college saving accounts.
As Ohio's Direct 529 Plan assets grow, CollegeAdvantage looks for efficiencies, including fee reductions like these. Making contributions to your 529 account will help you meet your savings goals. At the same time, your contributions also help to grow AUM, which allows for efficiencies and triggers AUM-based fee reductions. And don't forget, family and friends can also give the gift of college by contributing to your CollegeAdvantage Direct 529 account as well.
Ohio's 529 Plan's low fees, flexibility, investment line-up, and growth in assets makes it the seventh largest 529 college savings plan in the country. Earlier this summer, Saving For College, a trusted college-savings industry resource which provides unbiased research on 529 plans, financial aid, scholarships, as well as offers tools to help families estimate higher education expenses, ranked CollegeAdvantage Direct 529 Plan first in the nation for the best investment performance in the three-year and ten-year category. Ohio's Direct 529 Plan also ranks sixth in the nation in the five-year category. Additionally, Saving For College ranks Ohio's Direct 529 Plan as the second best college savings plan in the nation.
Saving For College also gave Ohio's Direct 529 Plan a 5-Cap Rating for both residents and non-residents. 5-Cap designation is dependent on criteria that shows the college savings plan "offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program."
New accounts also grow Ohio's 529 Savings Program, and as it grows, everyone benefits! Check out the tax advantages of saving for the future higher education dreams of your children or grandchildren with CollegeAdvantage.
An investment in an Ohio's 529 Plan is an investment in a child where every dollar saved today is a dollar that doesn't have to be borrowed later. A 529 account can be used for whatever comes after high school, including four-year universities, community colleges, trade or vocational schools, certificate programs and apprenticeships. For as little as $25, you can open an Ohio 529 account.
Learn, plan and start today at CollegeAdvantage.com.
Posted on October 27, 2021
Ohio Tuition Trust Authority