Families saving for future education expenses through Pennsylvania’s 529 Guaranteed Savings Plan (GSP) will receive a welcome financial boost as State Treasurer Stacy Garrity announces the waiver of asset-based fees for the third consecutive year. This initiative, directly benefiting account holders of the PA 529 College and Career Savings Program, will save families an estimated $5.5 million in 2024-2025, funded entirely by surplus earnings from the PA 529 GSP.
“By waiving these fees, we are making the already strong PA 529 Guaranteed Savings Plan an even more powerful tool for families in Pennsylvania,” stated Treasurer Garrity. “Whether a child’s future path leads to vocational training, an apprenticeship, technical school, community college, or a four-year university, the PA 529 GSP is designed to help families reach their education savings goals. This fee waiver translates directly into more money saved and less debt for families when their children pursue their chosen careers.”
The fee waiver, effective July 1, 2024, will be in place through June 30, 2025. PA 529 GSP account owners will see the elimination of asset-based fees reflected on their quarterly statements during this period.
Treasurer Garrity’s commitment to reducing costs for families extends beyond the GSP. She has also implemented multiple fee reductions for the PA 529 Investment Plan (IP), which holds a Gold Rating from Morningstar. Collectively, these fee waivers and reductions across both PA 529 plans are projected to save Pennsylvania families over $16.5 million by the close of the current fiscal year.
The PA 529 College and Career Savings Program is specifically structured to encourage Pennsylvania families to save strategically for a broad spectrum of qualified educational expenses. This includes costs associated with technical schools, colleges, apprenticeships, and even K-12 education. Furthermore, the program offers significant state and federal tax advantages, and assets held within PA 529 accounts do not negatively impact a student’s eligibility for Pennsylvania state financial aid.
The PA 529 GSP provides a unique benefit by allowing families to lock in today’s tuition rates for future education costs. Earnings in the GSP are tied to college tuition inflation rates. Savers can select a tuition credit rate aligned with different tiers of institutions, ranging from community colleges to Ivy League universities, offering flexibility and control over their savings strategy.
In contrast, the PA 529 IP offers a range of investment portfolios, with earnings fluctuating based on financial market performance. This provides an alternative for savers comfortable with market-based returns.
With over 30 years of history, PA 529 has become a cornerstone of education savings in Pennsylvania. Currently, the program encompasses more than 300,000 accounts, with over 113,000 in the GSP and 187,000 in the IP. Pennsylvania families have collectively saved nearly $8 billion through PA 529 for future education expenses, demonstrating the program’s significant impact.
For more detailed information about the PA 529 College and Career Savings Program and to explore how it can help your family, please visit pa529.com or call 800-440-4000.
