Magazine

Table: BusinessWeek's Guide to College Savings Plans (extended)


Click on the fund names to get information on that state's investment options and rates of return or click on the url to find out more at their Website.

State

Name of Fund

Manager

Contact Info

Residency Requirement

Number of Choices

Fees (h)

Max. Investment(i)

Min. Investment

State Tax Breaks & Incentives(k)

Penalties

Alabama

Legislation pending for savings plan (State has existing prepaid tuition plan.)Alaska

University of Alaska College Savings Plan

T. Rowe Price

800 478-0003 (in-state)

www.alaska.edu/swact

No

n/a

$250,000

$250 initial/ $50 after or $50 direct transfer

n/a

10% of growth

(To be introduced this spring. State has existing prepaid plan)Arizona (n)

Arizona Family College Savings Program

Securities Management & Research

888-667-3239

www.smrinvest.com

No

10

0.49% to 2.75%

plus $10 application fee

$168,616(I)

$100

(or $20 a month)

Tax-free growth

10% on earnings

Arizona residents can invest in any 529 plan and earnings grow tax-exemptArkansas

GIFT College Investing Plan

(Great Investment For Tomorrow)

Mercury Advisors

877-442-6553

www.thegiftplan.com

No

5

1.39% to 1.86%

$50/annual fee

$125,000(I)

$250

(or $50/month with automatic contributions)

Tax-free growth

10% on earnings

(Annual fee waived for Arkansas residents & some others)California

Golden State ScholarShare College Savings Trust

TIAA-CREF

877 728-4338

www.scholarshare.com

No

4

0.8%

Varies based on age and estimated costs of highest cost Calif. college

$25 (or $15/ installment plan)

Tax-deferred growth

10% on earnings

Colorado (b)

Scholars Choice College Savings Program

Salomon Smith Barney

888-572-4652

www.scholars-choice.com

No

5

1.29% plus $30 annual fee for non-Colorado residents

$150,000

$25

Entire contribution is deductible; Tax-free growth

10% on earnings

Connecticut

Connecticut Higher Education Trust

TIAA-CREF

888 799-2438

www.aboutchet.com

No

3

0.79%

$235,000(I)

$25 (or $15/installment)

Tax-free growth

10% on earnings

Delaware

Delaware College Investment Plan

Fidelity Investments

800 544-1655

www.fidelity.com

No

1 age-based portfolio

$30/yr. + 0.48% -- 1.29%

$131,480

$500, or $50/mo. electronic transfer

n/a

10% of growth

Will add 100% equity and 70% equity/30% bonds and money market funds this April District of Columbia

Washington D.C. has approved a college savings plan, which is likely to go into effect as soon as March, barring a decision by Congress to block it.Florida

Florida College Savings Program

Hasn't been picked

800 552-4723

www.floridaprepaidcollege.com

No

n/a

n/a

n/a

No state income tax; exempt from intangible tax

n/a

(Expected to open this summer. State has existing prepaid tuition plan.)Georgia

Georgia Higher Education Savings Plan (Legislation pending)Hawaii

New plan to open this year

Hasn't been picked

No

n/a

n/a

n/a

n/a

10% of growth

Idaho (a)

IDEAL (Idaho College Savings Program)

TIAA-CREF

866 433-2533

www.idsaves.org

(starts March 15)

No

3

0.86%-0.94%

$235,000 (I)

$25 (or $15/installment)

Up to $4,000 deduction a year per taxpayer

Tax-free growth

10% on earnings

Illinois(b)

Bright Start College Savings Program

Salomon Smith Barney

877-432-7444

www.brightstart savings.com

No

3

0.99%

$160,000 (I)

25

Tax-free growth

10% on earnings

Illinois residents have additional investment options that include CDs. The legislature is examing proposals for deductions Indiana

Indiana Family College Savings Plan

Bank One

888-814-6800

www.incollegesave.com

No

5

0.20% to 1.06%

plus $10 enrollment fee and $25 annual fee

$114,548

$50

10% on earnings

A proposal to make growth tax-exempt and give a deduction is before the legislatureIowa

College Savings Iowa

State invests using Vanguard funds

888-446-6696

http://www.collegesavingsiowa.com

No

1

(more options to come)

0.77% to 0.79%

$140,122

$50 in any year you contribute

$2,112 deduction per beneficiary tax free growth

10% on earnings

Kansas

Learning Quest Education Savings Program

American Century

800-579-2203

www.learningquest savings.com

No

3

0.91% to 1.35% plus $10 fee for Kansas residents & $40 for others

$127,000

$500 or $25/ month (Kansas residents); $2500 or $50/month (non-Kansans)

$2000 deduction per beneficiary

10% on earnings

Can elect an age asset allocation that has nothing to do with child's real ageKentucky(b)

Kentucky Education Savings Plan Trust

TIAA-CREF

877 598-7878

www.kentuckytrust.org

Yes

2

0.80%

$235,000(I)

$25 (or $15/ paycheck)

Tax-free growth

10% on earnings

Louisiana

Louisiana Student Tuition Assistance and Revenue Trust Program

State Treasurer

800 259-5626

www.osfa.state.la.us

Yes,

fund owner or beneficiary

1

None

$157,040 + inflation factor

$10

Tax-free growth

Deduct up to $2,400/yr. of contributions per beneficiary

10% of growth

Maine(b)

NextGen College Investing Plan

Merrill Lynch

877-463-9843

www.nextgenplan.com

No

15

1.31% to 2.13%

$50 annual fee

(waived for ME residents)

$153,000 (I)

$250 (or $50 with regular contribution)

Tax-free growth

10% on earnings

Difference in fees depends on if purchased direct or through financial advisors. Only four Merrill funds sold to direct investors.All 15 plans available through advisors. Added investments from MFS, Franklin Templeton & AIM in Nov. 2000. Maryland

Maryland College Investment Plan

Hasn't been picked

888 463-4723

www.prepaid.usmd.edu

No

n/a

100,000

n/a

Deduct up to $2,500 of contributions per yr. per account, with carryforward provision (m)

n/a

Expected to open this fall. State has existing prepaid tuition plan.Massachusetts(b)

U. Fund College Investing Plan

Fidelity Investments

800 544-2776

www.fidelity.com

No

1 age-based portfolio

$30/yr. + 0.48% to 1.29%

$171,125

$1,000, or $50/mo. electronic transfer

n/a

10% of growth

Plans to add 100% equity and 70%equity/30% bonds & money market in April

Michigan

MESP (Michigan Education Savings Program)

TIAA-CREF

877 861-6377

www.misaves.com

No

3

0.65%

$125,000(I)

$25 (or $15/paycheck)

$5,000 deduction Tax-free growth

10% on earnings + principal

State may match $1 for every $3 contributed up to $200 per child in first year of enrollment (check restrictions)Minnesota(a)

Minnesota College Savings Plan

TIAA-CREF

N.A.

No

3

0.65%

$100,000

$25 (or $15/installment plan)

State offers annual match of up to $300 (check restrictions)

10% on earnings

Mississippi

MACS (Mississippi Affordable College Savings Program)

TIAA-CREF

800-486-3670

(active mid-March)

www.collegesavingsms.com

No

3

0.86%-0.94%

$235,000(I)

$25 (or $15/installment)

$10,000 deduction Tax-free growth

10% of earnings

Plan to launch March 19. Prepaid plan already available.Missouri

MO$T (Missouri Saving for Tuition Program)

TIAA-CREF

888-414-6678

www.missourimost.org

No

3

0.0065

$100,000

$25 (or $15/paycheck)

$8,000 deduction Tax-free growth

10% tax on earnings

Nebraska

College Savings Plan of Nebraska

Union Bank & Trust

888-993-3746

www.planforcollegenow. com

No

10

0.92% to 1.08% plus $24 annual fee

$165,000(I)

$300 year ($25/month) in years you contribute

$1,000 deduction per family; Tax-free growth

10% on earnings

Invest in Fidelity, Janus, Vanguard, Pimco, American Century, State Street, & T. RowePrice fundsNew Hampshire

UNIQUE College Investing Plan

Fidelity Investments

800 544-1722

www.fidelity.com

No

1 age-based portfolio

$30/yr. + 0.48% to 1.29%

$166,600

$1,000, or $50/mo. electronic transfer

n/a

10% of growth

Plans to add 100% equity and 70%equity/30% bonds& money marketNew Jersey

New Jersey Better Educational Savings Trust

State Treasurer

877 465-2378

www.hesaa.org

Yes, either fund owner or beneficiary

1 age-based portfolio

$5/yr. + 0.5%

$150,000 (i)

$25/mo.

Tax-free growth (also for money in out-of-state plans); scholarships of $500 to $1,500 for those attending in-state

10% of growth

State obligated to return at least contribution level

New Mexico(b)

The Education Plan

State Street Global Advisors

800 499-7581

www.theeducationplan.com

No

9

0.88%-1.29% plus $30 annual fee

$160,539

$250 (then can do $25 monthly)

All contributions are deductible; Tax-free growth

10% on earnings

Underlying portfolios are funds managed by MFS, SSGA, Janus, Invesco. Annual fees waived for New Mexico residents & some others)New York

NY's College Savings Program

TIAA-CREF

877 697-2837

www.nysaves.org

No

4

0.65%

$100,000 and capped when balance reaches $235,000

$25 (or $15/installment)

$5,000 deduction Tax-free growth

10% on earnings

North Carolina

College Vision Fund

State Treas.

(4 new plans starting July 1 will be professionally managed)

800 600-3453

www.collegevisionfund.org

Yes, fund owner or beneficiary; (No after July 1)

1 now, 4 new ones beginning July 1(d)

0.5%

$187,500

None

Tax-free growth

15% of growth

(10% after July 1)

North Dakota

College SAVE

Morgan Stanley Dean Witter

800-472-2166

(temporary)

Waiting for SEC clearance. Not providing details

n/a

n/a

n/a

n/a

Ohio(b)

CollegeAdvantage

Putnam

800-233-6734

www.collegeadvantage.com or

www.putnaminv.com

No

4

1.05% to 1.82% with loads of up to 3.5% for some share classes for non-Ohio residents $25/annual fee (waived under certain circumstances)

$229,000 (I)

$25 (or $15/month)

$2,000 deduction/beneficiary with unlimited carryforward Tax-free growth

10% on earnings

Oklahoma

Oklahoma College Savings Plan

TIAA-CREF

877 654-7284

www.OK4saving.org

No

3

0.78% to 0.83%

$100,000

$25

(or $15/paycheck)

10% on earnings

Oregon

Oregon College Savings Plan

Strong Capital Management

866-772-8464

www.oregoncollegesavings.com

Either account owner or beneficiary needs to be a resident (state has legislation to change this)

4

1.1% to 1.58% (plus 0.65% back end load if purchased through an advisor)

$150,000(I)

$25/month

$2,000 deduction per tax filing

10% on earnings

Pennsylvania(n)

Undetermined

800 440-4000

(for existing hybrid tuition plan)

www.patap.org

No

Existing plan has requirement

n/a

n/a

n/a

Tax-free growth

No impact on state financial aid

State matches part of contributions for low-income

10% of growth

New fund to be introduced later this year. State already has hybrid tuition/savings plan.Rhode Island

CollegeBoundfund

Alliance Capital Management

888 324-5057

www.collegeboundfund.com

No

5

$25/yr. + 0.9% to 1.10%

$246,023

(balance at which contributions cease)

$250 to open account, then $50

Under consideration

10% of growth

South Dakota

Has a bill to create a college savings program before its legislatureTennessee(b)

BEST Savings Program (Baccalaureate Education System

TIAA-CREF

888-486-2378

www.tnbest.org

No

1

0.95%

$100,000

$25 (or $15/payroll)

Tax-free growth

10% on earnings

Texas

Has a bill to create a college savings program before its legislatureUtah

Utah Educational Savings Plan Trust

State invests in Vanguard funds

800-418-2551

www.uesp.org

No

4

No fees for money market option

Fees for other options from 0.31% to 0.35% plus up to $25 annual fee

$160,000

$25/month per family

$1,365 deduction per beneficiary

Tax-free growth

Lose all income if close account in 2 years; after that lose 10% of earnings

Vermont

Vermont Higher Education Savings Plan

TIAA-CREF

800-637-5860

www.vsac.org

Yes

(either child or account owner must be VT resident at enrollment)

2

(introducing new options by May)

0.80%

No fee for interest option

$100,000

$25

($15/payroll)

.

Tax-free growth

10% on earnings

Virginia(b)

Virginia Education Savings Trust

State agency

888 567-0540

www.virginiacollegesavingsplan.com

No

1 age-based portfolio

0.85% to 1.0%

$100,000

$25

Tax-free growth

Deduct up to $2,000/yr./acct. of contributions with carryforward

(Unlimited for aged 70 and older)(m)

10% of growth

Washington

Has a bill to create a college savings plan before its legislatureWest Virginia

800 307-4701

www.wvtreasury.com

Legislation pending. State has a prepaid tuition plan.

Wisconsin

EdVest College Savings Program

Strong Capital Management

888-338-3789

www.edvest.state.wi.us

No

7

Not determined but about 1%

(A $50 enrollment fee is likely to decrease)

$135,800

$25 per month with automatic withdrawal or $100

$3,000 deduction per dependent per tax filing

Tax-free growth

10% of earnings

Wyoming

College Achievement Plan

Mercury Advisors

877-529-2655

www.collegeachievementplan.com

No

5

1.35% to 1.83%

$50 annual fee

(waived for Wyoming residents & some others)

$120,000

$250

$50/month

(if sign up for automatic investing)

There is no state income tax

10% on earnings

(a)=not yet launched

(b)=prepaid plan also

(h)=any broker fees are extra, except where noted

(i)=contributions end at this balance

(k)=per taxpayer

(n)=state also has a hybrid plan


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