Saving for College Is Getting ... Cheaper?

Saving for College Is Getting ... Cheaper?

For many parents, the concept of socking away for their kids' college education can be a daunting one.

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Fortunately there's a bit of good news on that front this week. According to a new report from investment research firm Morningstar, the popular 529 college-saving plans are actually getting cheaper because of decreasing fees and increasing options.

"[The decline in fees] is a sign that the 529 industry is maturing, and states are being more aggressive in how they negotiate with money managers," Laura Lutton, director of funds research for Morningstar, told ABC News.

While it's true that almost every state currently offers a 529 plan, parents should do their research before jumping into one that might not be best for their financial situation. Check out our 529 page for more information on the options available.

You can also check out a full list of the 15 "cheapest" 529 plans available (based on average total expense ratio) at ABC News. The top five plans include:

1. South Carolina's Future Scholar 529:  Average total expense ratio: 0.13 percent

2. New York's 529 ProgramAverage total expense ratio: 0.17 percent

3. Michigan Education Savings ProgramAverage total expense ratio: 0.25 percent

4. Wisconsin's EdVest 529 PlanAverage total expense ratio: 0.25 percent

5. Utah Educational Saving PlanAverage total expense ratio: 0.25 percent

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