News & Press Releases
Georgia’s Path2College 529 Plan Reaches $4 Billion Savings Milestone and Introduces Lower Plan Fees in 2021
Atlanta, GA – Georgia families have a lot to look forward to in 2021 with a boost to their college savings plan. The Path2College 529 Plan (“P2C”), hit a major milestone as accountholder balances just reached $4 billion in savings. This new milestone comes on the heels of significant reductions to P2C program fees effective January 1, 2021.
At its annual meeting last month, the Georgia Higher Education Savings Plan Board, chaired by Governor Brian Kemp, approved lowering P2C program fees by nearly 70% as it waived the state’s administrative fee and awarded a new lower cost contract to TIAA-CREF Tuition Financing, Inc. (“TFI”), the Plan’s program manager.
Effective January 1, 2021, program management and administrative fees fell from 0.13% to 0.04%, saving P2C account owners over $3.5 million annually. Additional enhancements planned in 2021 to P2C’s investment menu will reduce account owner costs even further.
“With the rising cost of college and the changing work force that demands continued training and education, helping Georgians achieve their college savings goals is vital to keeping our state the best place to live, work, and raise a family,” said Governor Brian Kemp. “In May of 2019, I signed bipartisan legislation that doubled the state tax deduction for families contributing to Path2College beginning with the 2020 tax year. Combined with the Plan’s lower fees and improved investment options, there’s never been a better time to be a Path2College 529 Plan account owner.”
“Since the Path2College 529 Plan launched nearly twenty years ago, Georgia has made many improvements to provide greater benefits to help families save for college. Going forward, we will strive to continue offering families a best-in-class college savings plan,” said Steve McCoy, State Treasurer, whose office administers the P2C in concert with the Georgia Student Finance Commission which helps market the program.
About the Path2College 529 Plan
Contributions up to $8,000 per year, per beneficiary, are eligible for a Georgia state income tax deduction for those filing a joint return; and $4,000 per year, per beneficiary, for those filing a single return.
Savings in the state’s Path2College 529 Plan can be used at any accredited university, college or vocational school nationwide — and many abroad. Accounts can be opened with as little as $25.
For more information about the Path2College 529 Plan or to open a Path2College account, please visit www.Path2College529.com or call (877) 424-4377.
To learn more about the Path2College 529 Plan, its investment objectives, tax benefits, risks, and costs please see the Plan Description at path2college529.com. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors only available for investing in its own 529 plan. Consult your legal or tax professional for tax advice, including the impact of the new federal tax changes. If the funds aren’t used for qualified higher education expenses, a 10% penalty tax on earnings (as well as federal and state income taxes) may apply. TIAA-CREF Individual & Institutional Services, LLLC, Member FINRA, distributor and underwriter for the Path2College 529 Plan.