By Sean Whaley, Nevada News Bureau: Nevada Treasurer Kate Marshall announced today that one of the major college savings plans programs administered by her office has agreed to cut its fees to account owners by more than 40 percent.
The Vanguard 529 College Savings Plan, one of the state’s direct-sold plans, is slicing its fees for age-based options from 44 basis points (0.44 percent) to 25 basis points (0.25 percent) starting Oct. 15. Expenses on the plan’s 19 other individual portfolios are also being reduced. The Vanguard 529 Plan is now one of the lowest priced college savings plans available.
The fee reduction is expected to result in a savings to The Vanguard 529 College Savings Plan account owners of about $8.5 million annually.
“This is great news for families working hard to save for their children’s future college education costs, as the significant lowering of fees for Vanguard 529 College Savings Plan account owners will assist families in saving for a better tomorrow for their children,” Marshall said.
It is the fourth college savings plan fee reduction announced by the Treasurer’s Office in the past 18 months.
Vanguard Chairman and CEO Bill McNabb said: “Low costs are among the largest contributors to a portfolio’s long-term success. We’re pleased to help lower costs for Vanguard 529 College Savings Plan investors.”
The Vanguard 529 College Savings Plan has assets of over $4.5 billion dollars, with some 170,000 account owners nationwide, including 2,300 Nevada families.