Treasurer Stacy Garrity announced today that asset-based fees will be waived for the third consecutive year for PA 529 Guaranteed Savings Plan (GSP) account holders. This year’s fee waiver will save families $5.5 million and will be funded by PA 529 GSP surpluses.
“Waiving these fees makes our fantastic PA 529 Guaranteed Savings Plan even more valuable to the families who use it to save for their child’s future education,” said Treasurer Garrity. “The PA 529 GSP helps families reach their savings goals no matter what path their child takes in the future, whether it’s vocational training, an apprenticeship, technical school, community college or a four-year university degree. For families, this means more money saved for the future, which means less borrowing when a child chooses their path.”
This year’s fee waiver under PA 529 GSP took effect on July 1, 2024, and account holders will not see asset-based fees on their quarterly statements through June 30, 2025.
Treasury Secretary Garrity also made several reductions in fees for the Morningstar Gold-rated PA 529 Investment Plan (IP). In total, families will save more than $16.5 million through fee reductions and waivers for all PA 529 College and Career Savings Program accounts through the end of the current fiscal year.
PA 529 accounts are designed to help Pennsylvania families save steadily and strategically for a variety of qualified technical, college, vocational, and K-12 education expenses. There are significant state and federal tax advantages to saving with PA 529s, and PA 529 assets do not affect eligibility for Pennsylvania state financial aid.
The PA 529 GSP allows families to save on today’s tuition to cover tomorrow’s tuition. Account earnings are based on the college tuition inflation rate, and families can choose the tuition loan rate they want to save on, from community colleges to Ivy League universities.
The PA 529 IP offers a variety of investment opportunities. Account returns depend on the development of the financial markets.
PA 529 has been helping families reach their savings goals for over 30 years. There are more than 300,000 PA 529 accounts, including more than 113,000 PA 529 GSP accounts and more than 187,000 PA 529 IP accounts. Families currently have nearly $8 billion saved for future education expenses.
