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5-Cap Rating For Ohio’s Direct 529 Plan

Ohio’s Direct 529 Plan, offered by CollegeAdvantage, has earned the top 5-Cap Rating from Savingforcollege.com, an industry-trusted informational website which provides “how-to-save-for-college” articles on 529 plans, financial aid, and scholarships, as well as tools to help calculate college expenses.

CollegeAdvantage is one of only four 529 plans nationwide to receive the 5-Cap Rating for both state and out-of-state residents.

Savingforcollege.com awards their 5-Cap Rating to “a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.”

The rating is based on five criteria:

  1. The performance of the 529 plan,
  2. The costs of running the college-savings plan including expense ratios, administration and managerial fees,
  3. Special features such as a spectrum of age-based and risk-based portfolios as well as FDIC-insured options, participation in programs like Upromise and Ugift, and contribution restrictions,
  4. Reliability signals such as plan disclosure statements, the ease of making account changes, and the caliber of outside program managers,
  5. Extra advantages like tax benefits for any account owner as well as additional tax breaks for state residents.

Interested to learn more about College Advantage, Ohio’s 529 Savings Plan? Then read more here. To set up a highly rated Direct Plan account with CollegeAdvantage, go here.

Please note:

CollegeAdvantage is a 529 college savings plan offered and administered by the Ohio Tuition Trust Authority, an office within the Ohio Department of Higher Education. Before investing, please read the Offering Statement and all Supplements carefully and consider risks, fees, your investment objectives, and other relevant factors, before investing. If you are not a taxpayer in the State of Ohio, you should consider whether your home state offers any state tax or other benefits for investing in its 529 Plan. Other than the Fifth Third Investment Options (Banking Options), money contributed to an Account is not a bank deposit and is not insured by the FDIC or guaranteed in any way. Except for contributions invested in Banking Options, participants assume all investment risk related to the CollegeAdvantage Direct Plan, including the potential loss of Principal.  Contributions invested in Banking Options are an obligation of Fifth Third Bank and are insured by the FDIC, subject to certain limitations.

Posted on February 5, 2016

Ohio Tuition Trust Authority

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