BALTIMORE, June 28 /PRNewswire-FirstCall/ -- T. Rowe Price and the Education Trust of Alaska today announced a reduction in fees on the T. Rowe Price College Savings Plan, which is available to college savers nationwide. Effective July 1, 2010, the program fee will be cut by nearly one-third to 0.20% and the annual account fee by 20% to $20.
These reductions represent the T. Rowe Price College Savings Plan's continuing long-term commitment to helping families save for college. By reducing the plan's costs, account holders will keep a greater proportion of the investment returns from the college savings portfolios.
"We understand the challenge parents and students face in meeting and financing the cost of a college education," said Edward C. Bernard, vice chairman of T. Rowe Price Group. "Therefore, we continue to strive to help our customers get more value from their college savings plan so that they can successfully achieve their higher-education goals."
While the annual account fee has been reduced to $20, the fee is waived for customers who:
- Invest regularly with payroll deductions or Automatic Asset Builder or
- Have $25,000 or more invested for one child or
- Have a total of $75,000 or more invested for multiple children.
Fees will be lowered on both the T. Rowe Price College Savings Plan and the University of Alaska College Savings Plan, which combined had $1.2 billion in assets as of March 31, 2010. Both offer Enrollment-Based Portfolios that periodically adjust to reflect the beneficiary's investing time horizon as he or she gets closer to expected college entry, as well as five Static Portfolios.
For more information about the T. Rowe Price College Savings Plan, please visit www.price529.com or call 1- 800-369-3641.
The T. Rowe Price College Savings Plan, offered by the Education Trust of Alaska, is a national 529 college savings plan. T. Rowe Price also manages the Maryland College Investment Plan and the University of Alaska College Savings Plan, two 529 savings plans.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global investment management organization with $419.0 billion in assets under management as of March 31, 2010. The organization provides a broad array of mutual funds, subadvisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research. More information is available at www.troweprice.com.
SOURCE T. Rowe Price