Some 529 plan sponsors are reacting to parents concerned about recent market volatility and losses in their accounts.
Several states are making changes to their college-savings plans, hoping to keep parents from making a market-driven exodus.
Arizona, Delaware, Massachusetts, Nebraska, and New Hampshire are adding investment options. Some of the new funds have higher than average fees, a reminder that simply adding more choices is not necessarily better.
“The bottom line is more choice at the potential cost of more confusion,” says Joe Hurley, founder of SavingforCollege.com, which tracks 529 plans.
Cost of College 