Pennsylvania State Treasurer Stacy Garrity has announced a significant benefit for families saving for higher education: asset-based fees for the Pennsylvania 529 Guaranteed Savings Plan (GSP) will be waived for the third consecutive year. This initiative, effective July 1, 2024, through June 30, 2025, is projected to save families across Pennsylvania a total of $5.5 million, funded entirely by surplus earnings from the PA 529 GSP.
“Waiving these fees strengthens the PA 529 Guaranteed Savings Plan, making it an even more powerful tool for families planning for their children’s future education,” stated Treasurer Garrity. “Whether a child pursues career training, an apprenticeship, technical school, community college, or a four-year university, the PA 529 GSP is designed to help families reach their savings goals. This fee waiver translates directly into more money saved and less debt for families when their children embark on their educational journeys.”
This fee waiver builds upon Treasurer Garrity’s previous actions to reduce costs for PA 529 account holders. Fees have also been cut multiple times for the PA 529 Investment Plan (IP), which has earned a Morningstar Gold Rating. Cumulatively, these fee reductions and waivers across both PA 529 College and Career Savings Program plans are expected to save Pennsylvania families over $16.5 million by the close of the current fiscal year.
The PA 529 program is strategically structured to encourage Pennsylvania families to save for a broad spectrum of qualified educational expenses, spanning from technical and collegiate programs to apprenticeships and even K-12 education. A key advantage of saving with PA 529 is the significant state and federal tax benefits offered. Furthermore, assets held within PA 529 accounts do not negatively impact a student’s eligibility for Pennsylvania state financial aid.
The PA 529 Guaranteed Savings Plan (GSP) offers a unique approach to saving by allowing families to lock in today’s tuition rates to cover future costs. Earnings in the GSP are tied to college tuition inflation rates, and savers can select a tuition credit rate aligned with different types of institutions, ranging from community colleges to Ivy League universities.
In contrast, the PA 529 Investment Plan (IP) provides a range of investment options, with account earnings fluctuating based on financial market performance.
For over three decades, PA 529 has been instrumental in assisting families in achieving their education savings objectives. Currently, there are over 300,000 PA 529 accounts, including more than 113,000 GSP accounts and over 187,000 IP accounts, with families having accumulated nearly $8 billion for future education expenses.
To discover more about the benefits of the PA 529 College and Career Savings Program and how it can help your family save for future education costs, please visit pa529.com or call 800-440-4000.
