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Direct Plan Fee To Be Reduced Nov. 1

CollegeAdvantage, Ohio’s 529 Savings Program, is pleased to announce that the fee charged by Ascensus College Savings, the Direct 529 Plan’s program record-keeper, will be reduced by one basis point from 0.13% to 0.12%. This reduction starts Nov. 1, 2016. The overall effect is the total annual fee for the investment options in the Direct Plan will decrease by 0.01% in total. The record keeping fee reduction will have an impact on all of our investments except for our banking products offered through Fifth Third Bank. The banking products are not charged any record keeping fees. This fee reduction was made possible due to Direct Plan Assets Under Management (AUM) reaching a level that triggered contract-specified price reductions.

As Direct 529 Plan assets grow, CollegeAdvantage looks for efficiencies, including fee reductions like these. Making contributions to your 529 account will help it 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. And don’t forget, family and friends can also give the gift of college by contributing to your CollegeAdvantage Direct account as well.

New accounts also grow Ohio’s 529 Savings Program, and as the Direct Plan grows, everyone benefits! If you know someone with small children, tell them about the tax 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 to learn more and enroll online or request a CollegeAdvantage Kit.

Posted on October 28, 2016

Ohio Tuition Trust Authority

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