PA 529 program has best year in 2019

HARRISBURG » Pennsylvania families saved more last year in the Pennsylvania 529 College and Career Savings Program (PA 529) than any other year on record.

In making the announcement, Pennsylvania State Treasurer Joe Torsella said 2019 was the best year in the program’s 25-year history — the second year in a row that Pennsylvania families set a record.

In 2019, PA 529 account owners saved $624.4 million for postsecondary education expenses: $212.9 million in the Guaranteed Savings Plan (GSP) and $411.5 million in the Investment Plan (IP). These savings surpass the program’s previous record of $585.2 million, set during calendar year 2018.

“Pennsylvanians know all too well how heavy the weight of student debt can be,” Torsella said in a press release. “That’s why I’m so proud that so many of our families are doing what they can to avoid it in the first place, and for the second year in a row, have saved a record-breaking amount of money for a brighter future.” The PA 529 College and Career Savings Program sponsors two plans — the PA 529 GSP (Guaranteed Savings Plan), which lets families save for tomorrow’s post-secondary education expenses at today’s plan rates; and the PA 529 IP (Investment Plan), which allows account holders to choose how contributions are invested from a list of 17 options. PA 529 IP returns are based on financial market performance, whereas PA 529 GSP returns are based on postsecondary tuition increases, according to the release.

Between the two plans, the PA 529 College and Career Savings Program has more than $5.5 billion in assets saved in nearly 250,000 accounts.

In 2019, the PA 529 IP received, for the first time in its history, a bronze rating in Morningstar’s review of Top 529 College Savings Plans. The ranking puts the Pennsylvania plan among group of 30 “Best in Class” plans rated by Morningstar.

For more information about the PA 529 College and Career Savings Program, or to open an account visit pa529.com or call 1-800-440-4000.

Joe Torsella