Path2College 529 Plan

Fees and Expenses

The following table describes the fees and expenses that you pay if you open and contribute to an account in the Path2College 529 Plan. These fees are directly or indirectly paid out of the assets of your account. Except for the fees listed below, there are no other fees, charges or penalties imposed or payable in connection with opening or maintaining an account, other than any taxes and related penalties. The Board reserves the right to change the current fees, or to impose new or additional fees, expenses, charges or penalties in the future.

Fee Table

Investment Option Estimated Underlying  Fund Expenses(1) Program Manager Fee (2)(3) State  Fee Misc. Fees Total Annual Asset-Based Fees (4) Additional Invest or Expense
Managed Allocation
Age Band 1 (0-3 Years)
 0.19% 0.46%(5) None None 0.65% None
Age Band 2 (4-7 Years)
 0.21% 0.44%(5) None None 0.65% None
Age Band 3 (8-11 Years)
 0.24% 0.41%(5) None None 0.65% None
Age Band 4 (12-14 Years)
 0.25% 0.40%(5) None None 0.65% None
Age Band 5 (15-17 Years)
 0.24% 0.41%(5) None None 0.65% None
Age Band 6 (18 and Over)
 0.21% 0.44%(5) None None 0.65% None
 
Aggressive Managed Allocation Option
Age Band 1 (0-3 Years)
 0.14% 0.51%(5) None None 0.65% None
Age Band 2 (4-7 Years)
 0.17% 0.48%(5) None None 0.65% None
Age Band 3 (8-11 Years)
 0.20% 0.45%(5) None None 0.65% None
Age Band 4 (12-14 Years)
 0.22% 0.43%(5) None None 0.65% None
Age Band 5 (15-17 Years)
 0.24% 0.41%(5) None None 0.65% None
Age Band 6 (18 and Over)
 0.23% 0.42%(5) None None 0.65% None
 
100% Equity Option
 
 0.09% 0.42% None None 0.51% None
 
Balanced Fund Option
 
 0.28% 0.42% None None 0.70% None
 
Money Market Option (available March 10, 2008)
 
 0.14% 0.42% None None 0.56% None
 
100% Fixed Income Option
 
 0.33% 0.42% None None 0.75% None
 
Guaranteed Option
 
 None None(6) None None None None
 
(1) The Program Manager Fee is the only fee deducted from Program assets.  Program Manager Fees may change at any time.  Although there are no fees that are deducted from your Account, when you invest in the Program, you bear a pro rata portion of the Program expenses because when fees are deducted from Program assets, the value of the Program Units is reduced

(2) For its services as Program Manager, each Investment Option (with the exception of the Guaranteed Option) pays TIAA-CREF Tuition Financing, Inc., ("TFI") a Program Manager Fee equal to the stated percentage of the average daily net assets held by that Investment Option.  However, for the Managed Allocation Option and the Aggressive Managed Allocation Option, the percentages listed in this column may fluctuate.  For those Investment Options, generally, if the underlying Mutual Fund expenses increase, then the Program Manager fee decreases.
(3) For each Investment Option (with the exception of the Guaranteed Option), the figures in this column are based on a weighted average of the expenses of each underlying Mutual Fund's expense ratio as of February 1, 2007, in accordance with the Investment Option's asset allocation among its underlying funds.  Each Investment Option that invests in underlying Mutual Funds bears its pro rata portion of the underlying Mutual Funds' expenses because when fees are deducted from an underlying Mutual Fund's assets, the value of the underlying Mutual Fund's shares is reduced.
(4) The Total Annual Asset-Based Fees ("Total Fees") equal the Estimated Underlying Fund Expenses plus the Program Manager Fee.  The portion of Total Fees attributable to the Program Manager Fee is assessed over the course of the year against assets in each Investment Option (with the exception of the Guaranteed Option).  The portion of Total Fees attributable to Underlying Fund Expenses is borne by each Investment Option as discussed in footnote (3).  You should refer to the Investment Cost Example for the total assumed investment cost over 1-, 3-, 5-, and 10-year periods.
(5) For the Managed Allocation Investment Option and the Aggressive Managed Allocation Investment Option, the Program Manager Fee indicated applies on total assets in the Program up to $1.5 billion.  The Program Manager fee will be reduced by 0.05% when total assets in the Program reach $1.5 billion to $2.5 billion and by 0.10% when total assets in the Program reach $2.5 billion and above.
(6) The Guaranteed Option does not pay to TFI a Program Manager Fee.  TFI does, however, receive from TIAA-CREF Life, the issuer of the Funding Agreement, an annual asset based fee to pay TFI for distribution, administration, and other services that TFI provides for this Investment Option.  TIAA-CREF Life may discontinue this fee at any time.


Investment Cost Example
The example in the following table is intended to help you compare the cost of investing in the different Investment Options over various periods of time. This hypothetical example assumes that:

  • You invest $10,000 in a Savings Trust Account for the time periods shown below.
  • Your investment has a 5% compounded return each year, except for the Guaranteed Option, which is assumed to have a 3% compounded return each year.
  • You withdraw the assets from your Savings Trust Account at the end of the specified periods for qualified higher education expenses.
  • Total annual asset-based fees remain the same as shown in the Fee Table above.
  • The example does not consider the impact of any potential state or federal taxes on the redemption.

Although your actual costs may be higher or lower, based on the above assumptions your costs would be:

Investment Cost Example Chart

INVESTMENT OPTIONS APPROXIMATE COST OF
$10,000 INVESTMENT
     1  Year    3 Years    5 Years    10 Years
Managed Allocation Option
Age Band 1
(0-3 Years)
 $67 $209 $363 $812
Age Band 2
(4-7 Years)
 $67 $209 $363 $812
Age Band 3
(8-11 Years)
 $67 $209 $363 $812
Age Band 4
(12-14 Years)
 $67 $209 $363 $812
Age Band 5
(15-17 Years)
 $67 $209 $363 $812
Age Band 6
(18 and Over)
 $67 $209 $363 $812
 
Aggressive Managed Allocation Option
Age Band 1
(0-3 Years)
 $67 $209 $363 $812
Age Band 2
(4-7 Years)
 $67 $209 $363 $812
Age Band 3
(8-11 Years)
 $67 $209 $363 $812
Age Band 4
(12-14 Years)
 $67 $209 $363 $812
Age Band 5
(15-17 Years)
 $67 $209 $363 $812
Age Band 6
(18 and Over)
 $67 $209 $363 $812
 
100% Equity Option
 
 $52 $164 $286 $642
 
Balanced Fund Option
 
 $72 $225 $391 $873
 
Money Market Option
 
 $57 $180 $314 $703
 
100% Fixed-Income Option
 
 $77 $241 $418 $933
 
Guaranteed Option
 
 $0 $0 $0 $0



Additional Fees
The table below provides information concerning additional fees and expenses deducted from each Account/paid directly by the Account Owner.


   Percent   Dollars 
Application Fee
  0% $0
 
Cancellation Fee
  0% $0
 
Change in Beneficiary Fee
  0% $0
 
Change in Investment Options
  0% $0
 
Other Charges as applicable
  0% $0
 

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The Path2College 529 Plan is offered by the State of Georgia. TIAA-CREF Tuition Financing, Inc. (TFI) serves as Program Manager. TFI's affiliates, Teachers Personal Investors Services, Inc. (TPIS) and TIAA-CREF Individual & Institutional Services, LLC, member FINRA, distribute the Path2College 529 Plan.

The tax information contained on the Path2College 529 Plan Web site is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed in the Web site. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

The investment approaches described are not recommendations and do not take into consideration personal goals or preferences. After evaluating information you consider important in making an investment choice, the ultimate decision is up to you. It is a good idea to revisit your investment strategy periodically as your goals, personal financial situation, and market conditions change.

Consider the investment objectives, risks, charges and expenses before investing in the Path2College 529 Plan. Please call toll-free 1-877-424-4377 for a Disclosure Booklet containing this information. Read it carefully.

Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Georgia, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company's guarantee to the Board of the Georgia Higher Education Savings Plan under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.

The Path2College 529 Web site is for informational purposes only, and does not constitute an offer to sell or solicitation of an offer to buy any security that may be referenced on the site. Such offer or solicitation can be made only through the Disclosure Booklet

The Path2College 529 Web site contains links to other Web sites. Neither the Board of the Georgia Higher Education Savings Plan nor TIAA-CREF Tuition Financing, Inc. and its affiliates are responsible for the content of those other Web sites. The accuracy of information on those sites cannot be confirmed.

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