COLLEGEINVEST ANNOUNCES FEE REDUCTION FOR ITS DIRECT PORTFOLIO COLLEGE SAVINGS PLAN
Reduced fee structure complements Colorado families’ strong college savings trends.
Denver, CO, June 30, 2014 -- CollegeInvest announced today that the administrative fee for its Direct Portfolio saving plan has been reduced by 15%, the latest in a trend of cost savings for its 529 account holders. The fee reduction is the result of continued strong growth in the number of accounts invested in the Direct Portfolio plan in Colorado, and a renewed partnership between CollegeInvest and Vanguard/Ascensus College Savings in which added consumer benefit was the goal. The change went into effect on June 2, and all accounts were automatically updated.
CollegeInvest reports that Colorado is showing a very robust trend toward saving for college as an alternative to the high cost of student loans. Year over year, account growth in the state is up 10.8%, compared to the national average of 4.3%. 1 There are now more than 325,000 CollegeInvest savings accounts, representing $5.8 billion in assets. In lieu of the country’s crippling student loan debt, saving is the most effective way families can protect their financial future and ensure their children get the college education they will need to lead economically sustainable lives in the future.
“Every dollar saved in fees is another dollar saved for future college costs,” commented Angela Baier, Chief Executive Officer. “We see Colorado working hard to save and send their children to college, and that further inspires us to work hard to provide the best and most productive savings resources. These lower fees combined with our Colorado tax advantages make our Direct Portfolio plan one of the best savings options available.”
The Direct Portfolio plan is one of the country’s top-rated 529 college savings plans, having recently maintained its “5-Cap” 2 rating by savingforcollege.com. The 5-Cap rating is the highest rating available and indicates that the plan offers outstanding flexibility, attractive investments, and additional benefits relative to other 529 plans across the country. In addition to its Direct Portfolio plan, CollegeInvest offers three other savings plans, which makes it one of the most diverse State college savings resources in the country.
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About CollegeInvest
CollegeInvest is Colorado’s foremost resource designed specifically to help break down the financial barriers to attaining a higher education. By providing expert information, easy-to-use planning tools, and an exceptionally diverse menu of tax advantaged college savings plans, CollegeInvest works to help Coloradoans maximize their potential to save for college. CollegeInvest currently represents $5.8 billion in savings, in more than 325,000 accounts. Money saved in a CollegeInvest 529 savings plan can be used at any public or private college, university, community college or vocational school, anywhere in the country. For more information, visit collegeinvest.org or call 1-800-448-2424, or contact your financial advisor.
Important Considerations
To learn about CollegeInvest’s 529 program, its objectives, risks, charges, expenses, limitations, restrictions and qualifications regarding the Plans’ benefits and potential tax advantages, please read and consider carefully the Program Disclosure Statements (PDS) available at www.collegeinvest.org before investing. Administered and issued by CollegeInvest. CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest. Copyright © 2014 CollegeInvest.
Contributions to the CollegeInvest 529 Plans are deductible from Colorado State income tax in the tax year of the contribution up to the account holder’s Colorado taxable income for that year. Such deductions are subject to recapture in subsequent years in which non-qualified withdrawals are made.
To be eligible, an educational institution must participate in the US Dept. of Education’s Federal Student Aid (FSA) programs.
About Vanguard
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of 529 college savings plans. As of May 31, 2014, Vanguard managed nearly $2.64 trillion in U.S. mutual fund assets and $57 billion in college savings assets across 29 college savings plans and five prepaid tuition plans in 30 states. Vanguard offers more than 160 index and actively managed funds to U.S. investors and more than 100 additional funds in non-U.S. markets. For more information, please visit institutional.vanguard.com.
About Ascensus College Savings
Ascensus College Savings is part of Ascensus. Ascensus is the largest independent retirement and college savings services provider in the United States, helping over six million Americans save for the future. With more than 30 years of experience, the firm partners with financial institutions to offer tailored solutions that meet the needs of financial professionals, employers, and individuals. Ascensus specializes in recordkeeping, administrative, and program management services, supporting over 43,000 retirement plans and 3 million 529 college savings accounts. It also administers more than 1.5 million IRAs and health savings accounts
1 Data sourced at College Savings Plan Network “2013 529 Year-End Report” www.collegesavings.org
2 The 5-Cap Ratings represent savingforcollege.com’s opinion of the attractiveness of each 529 plan, relative to all other 529 plans, based on the many factors they feel are important. While mathematical formulas are employed in the scoring, the overall ratings are not the result of a fixed formula and a significant portion of the analysis is subjective. The ratings cannot assess every aspect of a 529 plan, its management, or how it may perform in the future.
About CollegeInvest
CollegeInvest is a not-for-profit division of the Colorado Department of Higher Education. Since 1979, CollegeInvest has helped Colorado families break down the financial barriers to college by providing expert information, simple planning tools, and college savings plans. For more information, visit www.collegeinvest.org or call 1-800-448-2424 or contact your financial advisor.
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