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Ohio’s 529 Plan, CollegeAdvantage Has Reduced Program Fees by a Full Basis Point Effective October 2021

·3 min read

COLUMBUS, Ohio, October 27, 2021--(BUSINESS WIRE)--Ohio’s 529 Plan, CollegeAdvantage, works to keep its fees as low as possible allowing families to save even more. The latest fee reduction happened October 1, 2021 when Vanguard, one of Ohio Direct 529 Plan’s partners, reduced their fee by half a basis point from 1.5 bps to 1.0 bps (0.015% to 0.10%). In addition, Ascensus College Savings, the program record-keeper for the Ohio Direct 529 Plan, reduced their fee by a half a basis point from 10 bps to 9.5 bps (0.10% to 0.095%). Both the reduction in fees by Vanguard and Ascensus College Savings reduces the overall fees in Ohio’s 529 Plan by one full basis point.

The fee reduction will have an impact on all of the investment options, with the exception of banking products offered through Fifth Third Bank. The banking products are not charged any record-keeping fees. The fee reduction was made possible due to Assets Under Management (AUM) for the Ohio Direct 529 Plan that reached a level that triggered contract-specific price reductions. As of September 30, 2021, Ohio’s 529 Plan oversees over $15.93 billion in AUM with more than 670,780 college savings accounts.

As Ohio’s Direct 529 Plan assets grow, CollegeAdvantage looks for efficiencies, including fee reductions like these. Continuing to make contributions to one’s 529 account will help families meet their savings goals. At the same time, contributions to accounts help grow the AUM. Growing AUM allows for efficiencies and triggers AUM-based fee reductions. "Lower fees make Ohio’s 529 Plan all the more appealing to investors and furthers more investment dollars going toward those education savings goals," said Tim Gorrell, executive director of Ohio’s 529 Plan.

Families and friends can also give the gift of college by contributing to CollegeAdvantage Direct 529 accounts as well. Over the years, Ohio’s 529 Plan has been known for low fees, flexibility, investment line-up, and growth in assets making Ohio’s 529 Plan one of the best college savings plans in the country.

New accounts also help grow Ohio’s 529 Savings Plan…the more the program grows the more everyone benefits. Let’s not forget the tax advantages of saving for the future higher education for a loved one. When participating in Ohio’s 529 Plan, any Ohio taxpayer (parents, grandparents, other family members and/or friends) who contributes to the account can claim a deduction of up to $4,000 per beneficiary, per year, from their state of Ohio taxable income. Account owners pay no taxes on the funds as they grow and withdrawals used for 529 qualified higher education expenses are free from state and federal income taxes.

Funds in Ohio’s 529 Plan can be used for all types of qualified higher education institutions, including a typical four-year college or university (public or private), two-year community college, technical or trade school, apprenticeship, or a certificate program. Funds may be used to pay qualified higher education expenses cost including tuition, fees, room and board, books, computers, and class supplies. Families can even use up to $10,000 for student loan repayment.

Ohio’s 529 Plan is offered and administered by the OTTA, a state agency under the Office of the Chancellor of the Ohio Department of Higher Education. Ohio is the seventh-largest state sponsor of 529 plans in the country. Ohio’s 529 Plan is offered as the CollegeAdvantage Direct 529 Savings Plan and the BlackRock CollegeAdvantage 529 Plan, which is offered and marketed through BlackRock and sold through professional financial advisors. Learn, plan and start today with Ohio’s 529 Plan at https://www.collegeadvantage.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006037/en/


Judith K. Cunningham
PR Manager
614-752-9350 or jcunningham@collegeadvantage.com