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We are pleased to announce that the fee charged by Vanguard to provide portfolio accounting and administration has been reduced from 0.025% to 0.02% effective August 1, 2015. This reduces the Total Annual Fee for the investment options in the Direct Plan. This fee reduction was made possible due to the Direct Plan Assets Under Management (AUM) reaching a high-enough level to trigger contract-specified price reductions. View the updated Fee Table.
This fee reduction comes on the heels of further reductions that were effective June 19, 2015. On that date, we reduced the OTTA Fee from 0.04% to 0.02%. The volume of AUM also made this reduction possible.
As assets grow, OTTA is able to consider plan efficiencies that include reductions like these. Making contributions to your account helps you to grow your savings to meet your savings goals. At the same time, your contributions also help to grow AUM, which allows for efficiencies and triggers AUM-based fee reductions. New accounts grow our plan, too, and everyone benefits. If you know someone with small children, tell them about the advantages of saving for college with CollegeAdvantage. You’ll be helping them to save for the future college dreams of their children or grandchildren, and you’ll be helping to grow the Plan, too. Refer family and friends to Whatisa529.com to learn more and to request a CollegeAdvantage Kit.
Posted on August 31, 2015