State Treasurer Fiona Ma Announces Fee Reduction for College Savings Program after Surpassing $15 Billion in Assets
SACRAMENTO – State Treasurer Fiona Ma announced today that ScholarShare 529, California’s official 529 college savings plan, has surpassed $15 billion in assets under management, automatically triggering a 1 basis point administrative fee reduction in its actively-managed and environmental, social and governance investment portfolio options.
“Saving for educational expenses is a smart investment for the future and can help end the cycle of intergenerational poverty and inequality,” said Treasurer Ma. “This fee reduction makes ScholarShare 529 an even more attractive option for parents and families to save and plan for the costs of higher education and trade schools. If you haven’t considered starting a 529 account now is even a better time to start saving!”
The administrative fee reduction was approved in June 2022 by the ScholarShare Investment Board (SIB), which Ma chairs as state treasurer, effective upon ScholarShare 529 exceeding $15 billion in assets. Reducing the administrative fee in these portfolios from 5 basis points to 4 basis points represents a 20 percent reduction in the annual administrative fee. ScholarShare 529 reduced the plan management fee for all portfolio options from 3 basis points to 1 basis point in 2020.
According to the National Center for Education Statistics, the annual average cost of attending college for undergraduate students living on campus at 4-year institutions was approximately $26,000 for public institutions and $55,800 for private. The cost of trade school varies but can cost upwards of $30,000 or more in California.
ScholarShare 529 enables Californians to save for college by putting their money in tax-advantaged investments. Participants are offered low-cost investment options, tax-deferred growth, and withdrawals free from state and federal taxes when used for qualified higher education expenses. As of March 1, 2024, ScholarShare 529 has 428,017 accounts.
To sign up for an account or for more information about the plan, visit www.scholarshare529.com. For information about the ScholarShare Investment Board (SIB), visit www.treasurer.ca.gov/
