Rhode Island college savings program gets top rating

PROVIDENCE – CollegeBound, Rhode Island’s 529 education savings program, has been rated as one of the best plans in the nation by Savingforcollege.com, an independent authority on 529 savings plans.

Rhode Island is one of 13 states in which its self-directed 529 plan for state residents scored a perfect five-star rating in the ranking, and one of only six states in which its financial adviser-distributed plan received top marks. No plans in any other New England states received a five-star rating.

The website stated about CollegeBound: “This is a program that offers outstanding flexibility, attractive investments and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost in their savings.”

Prior to 2015, Rhode Island’s 529 college savings program was consistently rated among the worst in the nation. General Treasurer Seth Magaziner said his office overhauled the CollegeBound program. It now has a lower fee structure, an expanded menu of investment options and a new program manager.

- Advertisement -

“The cost of continuing education, whether at college or a trade school, is rising – with no end in sight. We are working hard to ensure that Rhode Islanders have an affordable and easy way to save for college,” Magaziner said.

Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.