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Best Practices for College-Savings Plans

Morningstar highlights what moves a 529 plan from good to great.

College savers have no shortage of choice when it comes to 529 college-savings plans, and picking one plan over another can be difficult. In a new industry study out today, we focus on the industry's best practices in five key areas: Process, People, Parent, Price, and Performance. By highlighting some of the leaders in each of those areas, we give college savers more context with which to evaluate 529 programs.

Intro to 529 plans
The 529 industry consists of college-savings plans and prepaid-tuition plans. The former serve as a tax-favored means to invest money for use toward future qualified education expenses; the latter allow college savers to purchase contracts covering years of tuition or course credits. Morningstar’s analysis focuses on 529 college-savings plans.