Every student has different financial needs and priorities, so the T. Rowe Price College Savings Plan offers you plenty of choices to help meet your needs. With the T. Rowe Price College Savings Plan, you can entrust your college savings to proven investment managers, enjoy our world-class customer service, and pay no loads or commissions.
- Tax-Free Growth Potential
- High Contribution Limits
- Varied Investment Options
- Nationwide College Choice
- Flexibility to Meet a Wide Array of College Expenses
- Anyone Can Contribute
- Automatic Monthly Contributions
- Extensive Account Control
- Low Plan Costs
- Expert Approach
Any earnings kept within the plan are not taxed, and all withdrawals for qualified educational expenses are federal income tax-free. Over time, these tax advantages can greatly enhance the amount you have to spend on college.*
You can contribute up to an account balance maximum of $400,000** per child with our College Savings Plan, so it's a great way to prepare for a private college or graduate school.
You have a choice of 13 professionally managed portfolios that offer different levels of risk and reward, depending on your time horizon.
The assets can be used at any eligible private or public college, university, graduate school, or vocational school anywhere in the country. Some international schools qualify as well.
Your beneficiary can use the money to pay for tuition, certain housing costs, books, and mandatory fees.
The College Savings Plan can be a great choice for parents, grandparents, or anyone else who wants to save for a child's education. You can open an account for yourself or anyone you choose—there are no limits on age, income, or relationship to the beneficiary.
You can make regular contributions to your child's account to fit the plan into your budget. It's easy to save—you can get started for as little as $50 a month. In addition, we'll waive the annual account fee when you invest through Automatic Monthly Contributions.
Unlike many other types of education savings plans, you control the assets in this account. So if your beneficiary decides not to continue his or her education, you can transfer the funds to another beneficiary or take a withdrawal.
You pay no sales commissions, and we keep our fees low to help you save money.
When you're investing for something as important as a child's education, you want to work with a company you can trust. T. Rowe Price has more than 70 years of experience devoted to investment management and is recognized as a leader in no-load mutual funds.
**Currently, $400,000 is the maximum balance allowed for a beneficiary (regardless of the number of accounts). Once the cumulative balance of all accounts for a particular beneficiary reaches $400,000, you will no longer be able to make contributions; however, the accounts will still continue to appreciate or depreciate based on market conditions. At the Trustee's discretion, the $400,000 maximum account balance can be increased, if necessary, to reflect increasing college costs.
Morningstar analysts reviewed 64 plans for both its 2013 ratings (10/22/13) and 2012 ratings (10/15/12), of which 4 plans received a "Gold" rating. To determine a plan's rating, Morningstar's analysts considered five factors: the plan's strategy and investment process; the plan's risk-adjusted performance; an assessment of the individuals managing the plan's investment options; the stewardship practices of the plan's administration and parent firm; and whether the plan's investment options are a good value proposition compared to its peers. Plans were then assigned forward-looking ratings of "Gold," "Silver," "Bronze," "Neutral," and "Negative." 21 of the industry's smallest plans were not rated in 2013 and 22 were not rated in 2012.
Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar analysts' current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar's expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its Analyst Ratings to be guarantees.