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 in December, 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.
Path2College is now the lowest cost 529 plan. Effective January 1, 2021, program 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 should reduce accountholder 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 virtually any school in the United States and some abroad, and savings can be used to obtain two-year vocational/technical education, a traditional four-year degree and for post-graduate work. 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.