The program fee will be reduced to 0.2%, down nearly one-third of the original cost, and the annual account fee will be $20, a 20% reduction. The reduced costs will allow account holders to keep a greater proportion of the investment returns from their college savings portfolios.
The reduced annual account fee will also be waived for customers who:
• Invest regularly with payroll deductions or Automatic Asset Builder; or
• Have $25,000 or more invested for one child; or
• Have a total of $75,000 or more invested for multiple children.
“We understand the challenge parents and students face in meeting and financing the cost of a college education,” said Edward C. Bernard, vice chairman of T. Rowe Price Group. “Therefore, we continue to strive to help our customers get more value from their college savings plan so that they can successfully achieve their higher-education goals.”
Fees will be lowered on the T. Rowe Price College Savings Plan, a national 520 college savings plan, and the University of Alaska College Savings Plan. Both of these offer five Static Portfolios, as well as Enrollment-Based Portfolios that periodically adjust to reflect the beneficiary’s investment time horizon as the client approaches the expected time of college entry.
For more information about the T. Rowe Price College Savings Plan, please visit http://www.price529.com.