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March 11, 2002 BW Magazine Table of Contents

March 11, 2002 College Planning Table of Contents
COLLEGE SAVINGS
Picking a Plan

BW's Guide to the Plans

Scholarships

Tuition Insurance

Shopping to Save

Prepaid Tuition Plans

Custodial Accounts

Commentary: Early
Decision

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MARCH 11, 2002

BUSINESSWEEK INVESTOR -- COLLEGE PLANNING
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BusinessWeek's Guide to College-Savings Plans (extended)


State
Contact Number 		INVESTMENT CHOICES Link to Plan/
Invest. Manager
2001 Returns(a) 		EXPENSES Max. Contribution State Tax Deduction Tax-Free Withdrawal Residency Required
# Options Age-based 100% Equity 100% Fixed Inc. Other (See Key) Account Fees(b) Expense Ratios(c)
Broker Fees
ALASKA
866 277-1005 		12 8 1 1 M, TU The University of Alaska College Plan Savings
T. Rowe Price 		N/A $30/yr. 0.32% to 0.76% + 0.30% N/A $250,000 N/A (No state income tax)
No
800 369-3641
11 8 1 1 M T. Rowe Price College Savings Plan
T. Rowe Price 		N/A $30/yr. 0.55% to 0.76% + 0.30% N/A $250,000 N/A (No state income tax)
No
866 222-7498 10 6 2 2
Manulife College Savings Plan#
T. Rowe Price and Manulife Financial 		N/A $30/yr. 0.45% to 1.39% Class A: 3.5% load + 0.75%/yr.
Class C: 1.05%/yr. 		$250,000 N/A (No state income tax)
No
ARIZONA
888 923-3355 		3 3


InvestEd#
Waddell and Reed 		N/A None 1.70% to 2.58% Class A: 5.75% load
Class B: 5% back-end load
Class C: 1% back-end load 		$177,000 No Yes No
888 667-3239 10
6 3 M Arizona Family College Savings Plan
Securities Management & Research 		-39.6% to 5.12% $10 application fee 0.49% to 10.97% Class A: 4.75% to 5% load
Class B: 3% to 5% back-end load + 0.51% to 3.74%/yr. (d) 		$177,000 No Yes No
ARKANSAS†
877 615-4116 		5 1 1 1 M GIFT College Investing Plan
Mercury Advisors 		-9.11% to 5.15% $25/yr. 0.50% to 1.74% + 0.60% or 0.95% N/A $245,000 No Yes No
CALIFORNIA‡
877 728-4338 		5 2 2
G Golden State ScholarShare College Savings Trust
TIAA-CREF 		-17.22% to 5.00% None 0.80% N/A $124,799 - $174,648, depending on child's age No No No
COLORADO
888 572-4652 		4 1 1 1 M Scholar's Choice
Salomon Smith Barney 		-8.82% to 7.21% None 0.99% to 1.09% Class A: 3.50% load + 0.25%/yr.
Class B: 2.5% back-end load + 0.95%/yr. first 8 yrs. then 0.25%/yr.
Class C: 0.65%/yr. (d) 		$235,000 Unlimited Yes No
CONNECTICUT
888 799-2438 		3 1

M, MM CHET
TIAA-CREF 		-8.88% to 5.35% None 0.79%; 0.02% for MM N/A $235,000 No Yes No
DELAWARE
800 544-1655 		11 8 1 1 M Delaware College Investment Plan
Fidelity 		-14.36% to 2.77% $30/yr. 0.88% to 1.13% N/A $250,000 No Yes No
IDAHO†
866 433-2533 		3 1 1
G IDeal
TIAA-CREF 		N/A None 0.70% N/A $235,000 $4,000 (f) Yes No
ILLINOIS
877 432-7444 		3 1 1 1
Bright Start College Savings Program
Salomon Smith Barney 		-11.62% to 7.73% None 0.99% N/A $235,000 Unlimited Yes No
INDIANA
866 400-7526 		7 5 1 1
College Choice 529 Investment Plan
One Group Administrative Services 		-12.57% to 8.16 $10/yr. in-state, $30/yr. out-of-state 0.35% to 0.97% Class A: 3.5% load + 0.40%/yr.
Class B: 0.95% for 6 yrs. then 0.40%/yr.
Class C: 0.65%/yr. 		$114,548, on July 1, $236,750 No Yes No
IOWA
888 672-9116 		4 4


College Savings Iowa
State Treasurer uses Vanguard funds 		N/A None 0.65% N/A $146,000 $2,180/beneficiary Yes No
KANSAS
800 579-2203 		22 21

M Learning Quest Education Savings Program
American Century 		-16.10% to 2.15% $40/yr. out of state 0.52% to 0.95% + 0.39% N/A Now, but plan on offering through brokers by April $235,000 $2,000 (f) Yes No
KENTUCKY†
877 598-7878 		2 1 1

Kentucky Education Savings Plan Trust
TIAA-CREF 		-13.69 to 2.00% None 0.80% N/A $235,000 No Yes Yes
LOUISIANA†
800 259-5626 		1


T Student Tuition Assistance and Revenue Trust Program (START)
State Treasurer 		0.0633 None None N/A 173065 $2,400/account (g) Yes Yes
MAINE (k)
877 463-9843 		4 1 1 1 M NextGen College Investing Plan
Merrill Lynch 		-11.81% to 5.01% $50/yr. Avg. 1.80% N/A $235,000 No Yes No
MARYLAND
888 463-4723 		10 7 1 1 M College Savings Plans of Maryland--College Investing Plan
T. Rowe Price 		N/A $90 enrollment fee; $30/yr. 0.38% N/A $175,000 $2,500/account (g) Yes No
MASSACHUSETTS‡
800 544-2776 		11 8 1
M U Fund College Investing Plan
Fidelity 		-12.18% to 2.70% $30/yr. 0.88% to 1.13% N/A $230,000 No No No
MICHIGAN
877 861-6377 		3 1 1
MM/G Michigan Education Savings Plan
TIAA-CREF 		-14.52% to 5.45% None 0.65% N/A $235,000 $5,000 (f) Yes No
MINNESOTA
877 338-4646 		3 1 1
MM/G Minnesota College Savings Plan
TIAA-CREF 		N/A None 0.65% N/A $122,484 No Yes No
MISSISSIPPI
800 486-3670 		3 1 1
MM/G Mississippi Affordable College Savings Program
TIAA-CREF 		N/A None 0.70% N/A $235,000 $10,000 (f) Yes No
MISSOURI
888 414-6678 		3 1 1
G Missouri Saving for Tuition
TIAA-CREF 		-15.59% to 6.21% None 0.65% N/A $235,000 $8,000/taxpayer Yes No
NEBRASKA
888 993-3746 		10 4 1 1 M College Savings Plan of Nebraska
Union Bank & Trust 		-12.87% to 5.11% $24/yr. 0.94% to 1.04% Class A: 3.5% load + 0.25%/yr.
Class C: 0.50%/yr.
Class H: 5.75% load (d) 		$250,000 $500 (f) Yes No
877 246-7526 10 7 1
M AIM College Savings Plan#
Union Bank & Trust/AIM Funds 		N/A $25/yr. avg. 1.25% Class A: 3.5% load + 0.35%/yr.
Class B: 2.5% back-end load + 0.90%/yr.
Class C: 1% back-end load + 0.90%/yr. 		$250,000 $500 (f) Yes No
NEVADA
877 529-5295 		4 1
1 M America's College Savings Plan
Strong 		N/A $20 enrollment fee 1.30% N/A $246,000 N/A (No state income tax)
No
800 752-6342 6 3

M American Skandia College Savings Program#
Strong / American Skandia 		N/A $30/yr. 1.46% to 1.92% Class A: 3.50% load + 0.15%/yr.
Class C: 0.60%/yr. + 1.0% back-end load 		$246,000 N/A (No state income tax)
No
NEW HAMPSHIRE
800 544-1722 		11 8 1 1 M Unique College Investing Plan
Fidelity 		-12.21 to 3.19% $30/yr. 0.88% to 1.13% Class A: 3.5 % load + 0.25%/yr.
Class B: 2.5% back-end load + 0.25%/yr.
Class C: 0.50%/yr. (d) 		$233,240 N/A (No state income tax)
No
NEW JERSEY
877 465-2378 		1 1


NJ Best
State Treasurer 		0.1% to 3.7% $5/yr. 0.50% N/A $185,000 No Yes Yes
NEW MEXICO
877 337-5268 		9 1 1 1 M, MM The Education Plan's College Savings Program
State Street 		-13.25 to 6.91% $25/yr. 0.78% to 1.56% Class A: 3.50% load (d) $251,000 Unlimited Yes No
866-529-7367 9 1 1 1 M, MM CollegeSense#
State Street/New York Life 		N/A $25/yr. 1.10% to 1.66% Class A: 3.50% load
Class C: 0.60%/yr. + 1% back-end load 		$251,000 Unlimited Yes No
866-529-7283 9 1 1 1 M, MM Scholar's Edge#
State Street/Oppenheimer 		N/A $25/yr. 1.02% to 1.65% Class A: 3.50% load
Class C: 0.50%/yr. + 1% back-end load 		$251,000 Unlimited Yes No
NEW YORK
877 697-2837 		4 2

G, M New York's College Savings Program
TIAA-CREF 		-21.46% to 5.00% None 0.65% N/A $235,000 $5,000 (f) Yes No
NORTH CAROLINA
800 600-3453 		4 1 1 1 M North Carolina's National College Savings Program
State Treasurer/Wachovia/NCM Capital Management/Seligman 		N/A None 0.1% to 0.25% admin. fee; avg. fund fee 0.05% - 1.16% Class A: 3.25% load + 0.50%/yr.
Class B: 2.5% back-end load + 0.95%/yr. 1st 8 yrs. then 0.50%/yr.
Class C: 1.0% load + 0.75%/yr. (d) 		$268,804 No Yes Yes (out-of-state residents can only buy a broker-sold plan)
NORTH DAKOTA
866 728-3529 		5 3

M College SAVE
Morgan Stanley 		N/A $30/yr. out of state 0.85% to 1.25% in state; 1.35% to 1.75% out of state N/A $268,000 No Yes No
OHIO†
800 233-6734 		14 1 1
I, M CollegeAdvantage#
Putnam 		-11.94% to 1.59% $25/yr. out of state 0.49% to 1.23% Class A: 3.5% to 5.75% load + 0.25%/yr.
Class B: 5% back-end load + 0.25%/yr.
Class C: 1% back-end load + 0.50% to 1%/yr. (h) 		$232,000 $2,000/beneficiary (b) Yes No
OKLAHOMA
877 654-7284 		3 1 1
MM/G Oklahoma College Savings Plan
TIAA-CREF 		-14.06% to 5.40% None 0.79% to 0.83% N/A $235,000 $2,500/account Yes No
OREGON
866 772-8464 		5 1 1
M Oregon College Savings Plan
Strong 		-14.30% to 2.20% None 1.00% to 1.275% Class A: 3.5% load + 0.4%/yr.
Class B: 2.5% back-end load + 0.95%/yr
Class C: 1.0% back-end load + 1%/yr. (d) 		$250,000 $2,000/taxpayer Yes No
RHODE ISLAND
888 324-5057 		15 2 2
C, M, PP CollegeBoundFund
Alliance 		-13.65% to -0.50% $25/yr. 0.68% to 1.67% Class A: 4.25% load + 0.25%/yr.: Class B: 4.0% back-end load + 1.0%/yr. for 8 yrs. then 0.25%/yr.
Class C: 1.0% back-end load + 1.0%/yr. (d) 		$265,000 No Yes Yes (out-of-state residents can only buy a broker-sold plan)
SOUTH CAROLINA
888 244-5674 		9 6 2
G FutureScholar 529 College Savings Program
Bank of America 		N/A None 0.55% to 0.76% N/A Now, but plans for new broker offering in April $250,000 $250,000 lifetime limit Yes Yes (out-of-state residents can only buy a broker-sold plan)
SOUTH DAKOTA*
866 529-7462 		25 5 12 6 MM, C CollegeAccess 529 Plan
Pimco Funds 		N/A N/A N/A N/A N/A N/A (No state income tax)
No
TENNESSEE
888 486-2378 		1 1


Tennessee's BEST
TIAA-CREF 		-14.69% to 3.74% None 0.95% N/A $235,000 N/A (No state income tax)
No
UTAH
800 418-2551 		4 2 1
MM Utah Educational Savings Plan Trust
State uses Vanguard funds 		-12% to 8% $25/yr. (i) 0% MM; 0.31% to 0.35% otherwise N/A $101,650 in state, $176,000 out of state $1,410/beneficiary Yes No
VERMONT
800 637-5860 		3 1 1 1
Vermont Higher Education Investment Plan
TIAA-CREF 		-13.37% to 5.06% None 0% for fixed income; 0.80% otherwise N/A $240,100 No Yes No
VIRGINIA
888 567-0540 		12 8

M, MM Virginia Education Savings Trust
Virginia College Savings Plan Board 		-2.5% to 7.2% $85 application fee 0.85% to 1.00% N/A $250,000 $2,000/account (g) (j) Yes No
800 421-9900, ext. 529 21 12 5
M, MM CollegeAmerica#
American Funds 		N/A $10/yr. 0.51% to 1.17% Class A: 3.75% to 5.75% load + 0.07% to 0.21%/yr.
Class B: 6% back-end load + 1.0%/yr. for 8 yrs. then 0.07% to 0.21%/yr.
Class C: 1.0%/yr. 		$250,000 $2,000/account (g) (j) Yes No
WEST VIRGINIA(k)
866 574-3542 		4 1 1
M Smart529
Hartford 		N/A $25/yr. 1.16% Class A: 5% load + 0.3%/yr
Class C: .99%/yr. (d) 		$265,000 Unlimited Yes Yes (out-of-state residents can only buy a broker-sold plan)
WISCONSIN†
888 338-3789 		7 1 1 1 M, TU EdVest College Savings Program
Strong 		-8.1% to 3% $20 enrollment fee;$10/yr. 1.25% Class A: 3.5% load + 0.4%/yr
Class B: 0.95%/yr + 2.5% back-end load
Class C: 1.0%/yr + 1.0% back-end load (d) 		$246,000 $3000/dependent Yes No
866 677-6933 6 3


Tomorrow's Scholar#
Strong/American Express 		-8.8% to 0.3% $20 enrollment fee;$10/yr. 1.27% Class A: 3.5% load + 0.4%/yr
Class B: 0.95%/yr + 2.5% back-end load
Class C: 1.0%/yr + 1.0% back-end load 		$246,000 $3000/dependent Yes No
WYOMING
877 529-2655 		5 1 1 1 M College Achievement Plan
Mercury Advisors 		-7.75% to 6.36% $25/yr. 0.67% to 1.77% + 0.95% N/A $245,000 N/A (No state income tax)
No
CORRECTIONS AND CLARIFICATIONS
The table accompanying "How to pick the right college plan" (BusinessWeek Investor, Mar. 11) should have indicated that Colorado offers an unlimited state tax deduction to its residents. Also, Connecticut reserves the right to charge 0.02% on top of the 0.79% expense ratio, but it has never done so.
KEY:
M=Mix of stocks, bonds, and/or money market; TU=Linked to tuition-price Inflation; G=Guaranteed; MM=Money market; T=Trust Fund;
I=Individual mutual funds; C=Customizable portfolios; PP=Principal protection

‡ State will tax earnings; † State will tax out-of-state earnings; * Plan expected to launch by April; # Must be purchased through a broker; (a) Returns only for investment options available for full year 2001; (b) Some states waive fees under certain circumstances; (c) Includes management fees and underlying fund fees; (d) None if bought directly from state; (f) Twice this amount if filing jointly; (g) Carryforward; (h) Less for Ohio residents; (i) 0.5% for accounts of less than $5,000; (j) No cap on deductions for account holders over age 70; (k) Additional options avaliable through a broker; (l) Plan also distributed through T.D. Waterhouse at added cost; (m) Will launch broker-sold product open to out-of-state residents later.





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