GOOD NEWS FOR THE EDUCATION PLAN®

The Education Trust Board recently announced changes to the Education Plan® that decrease fees and provide additional investment options with more investment diversification. These enhancements underscore our commitment to helping you reach your college savings goals.

Lower-Cost Index Funds and Lower Plan Fees

The index funds in The Education Plan are now lower-cost Vanguard Funds. In addition, management and administrative fees have been reduced to allow more of your money to go directly to saving for your student's education.

Increased Investment Diversification

New asset classes have been added to The Education Plan portfolios, such as real estate and TIPS. The addition of new asset classes improves the diversification of the investments within the Plan.

Additional Investment Portfolio Options

We've increased the number of portfolios available within the Age Based and Custom Choice investment options from 6 to 11. We made change to provide more investment choices for account owners; and to "smooth" the asset allocation transitions in our Age Based investment options. Now, account owners can choose from investment portfolios that differ by 10% stock increments, instead of 20% as in the old design.

Our account owners showed us that three Age Based Tracks (Aggressive, Growth and Balanced) were more than they needed. The former Growth and Balanced Age Based Tracks have merged into one track, called the Balanced Age Based Track...The new Balanced Age Based Track starts with a 70% stock and 30% fixed income mix.

The former Aggressive Age Based Track has been renamed the Growth Age Based Track. It starts with a 100% stock mix as in the past.

These two Age Based Tracks will benefit from the "smoothing" effect of the additional investment portfolios. As the beneficiary ages and the portfolio's asset allocation shifts, the stock portion will drop by 10% instead of 20% as in the old design. Investment experts tell us that this smoothing can help cushion the effect of stock market volatility over time.

Click Here to see Plan investment options.


Our Commitment to You

The Education Plan is committed to providing you with investment choice and flexibility to meet your education savings goals. If you have any questions about the Plan, please call 877-337-5268 to speak with an Education Plan Specialist or click here to open an account today.

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