HARRISBURG, Pa., Aug. 26, 2016 /PRNewswire/ -- Pennsylvania's 529 College Savings Program continues to perform strongly, leading Treasurer Timothy A. Reese to waive third quarter account maintenance fees for all PA 529 Guaranteed Savings Plan (GSP) account owners. Treasury will also return all account maintenance fees paid in the previous year to account owners with a balance of $25 who register by September 30 to have their account statements electronically delivered.
The treasurer also announced that the GSP is currently 113.7 percent funded and that premiums for the upcoming academic year (2016-17) are cut by half (5 percent to 2.5 percent) for state-related average tuition levels and at the Pennsylvania State University and the University of Pittsburgh. Account owners can go to the 529 website to find a complete list of current GSP credit rates.
"Pennsylvania's 529 program continues to see strong financial results and as a result we are able to reduce and return millions of dollars in fees to our account owners," said Treasurer Reese. "Every dollar counts when saving for education and this will help families' college savings grow faster."
The PA 529 College Savings Program provides families with two ways to save for college, trade or technical school: The GSP and the Investment Plan. The GSP when used for college, bases growth on college tuition inflation. For example, if a family has saved enough for one credit or 120 credits at most Pennsylvania State System of Higher Education universities they will have enough for that many credits at that university when their child is ready to use those funds – no matter how much tuition has increased in the meantime.
Reese urged Pennsylvanians to open up, or contribute to an existing PA 529 account before new credit rates take effect on September 1, 2016 to maximize savings. "College costs keep rising, so the sooner you put a plan in place, the more time your savings can have to grow. Every child deserves a future filled with opportunity," Reese said.
Savings in the PA 529 IP earn returns based on the performance of the financial markets. The plan features low fees and more than a dozen conservative and aggressive investment options from The Vanguard Group, one of the nation's largest financial services companies.
Families contributed $461.2 million to the PA 529 plans during fiscal year 2015-16 bringing the assets in the PA 529 plans as of July 30 to more than $3.8 billion. Since its inception 23 years ago, more than 88,000 students have benefitted from the PA 529 College Savings Program with 207,000 current and future college students now saving for higher education.
To learn more about either plan, or to open and contribute to a PA 529 account, visit PA529.com or 800-440-4000.
The Pennsylvania 529 College Savings Program sponsors two plans - the PA 529 Guaranteed Savings Plan (GSP) and the PA 529 Investment Plan (IP). The guarantee of the PA 529 GSP is an obligation of the GSP Fund, not the Commonwealth of Pennsylvania or any state agency. Before investing in either plan, please carefully read that plan's disclosure statement (available at www.PA529.com or by calling 800-440-4000) to learn more about that plan, including investment objectives, risks, fees and tax implications.
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SOURCE Pennsylvania Treasury