ST. LOUIS – Private College 529 Plan, the nation’s only 529 college savings plan not run by a state government, is now partnering with a new program administrator, investment provider and custodian to enhance service to account owners and member colleges and universities.
Private College 529 has teamed up with Intuition College Savings Solutions as its new program administrator and Charles Schwab Investment Management as its primary investment provider. Invesco Advisors was previously program administrator and investment manager.
Private College 529 is a prepaid tuition plan operated by nearly 300 private colleges and universities nationwide offering tomorrow’s tuition at today’s prices. It opened in 2003 and, since then, has helped families pay more than $100 million in tuition. Families pay no fees, and member institutions guarantee the prepaid tuition and shoulder the investment risk.
Ease of Use
Intuition is a program administrator with 30 years of experience in the college savings industry. Intuition’s responsibilities include recordkeeping and customer service for families and member schools. After migrating data to Intuition’s Align529TM platform, families now can manage their contributions or redemptions and track tuition benefits online. Align529TM also supports member schools’ capabilities to monitor and track students’ prepaid tuition redemptions.
“We’re excited to offer this enhanced user-experience and increased flexibility to Private College 529 account owners and member colleges,” said Mike Dunlop, Intuition’s chief operating officer.
As part of the transition, approximately 65% of Private College 529 portfolio – or $240 million – has been invested in Charles Schwab Investment Management’s (CSIM) low-cost index funds. Additionally, Charles Schwab Trust Bank has been named as custodian for all assets in the Plan.
“We were impressed with the emphasis Intuition places on client service, and with the portfolio construction expertise of Charles Schwab Investment Management,” said Board Chair Timothy R. Warner, vice provost at Stanford University. “Both are committed to helping Private College 529 grow the number of families saving for college and add to the roster of member institutions.”
Private College 529 worked with CSIM’s Portfolio Construction Framework analytics team to take a close look at the plan and conduct asset / liability modeling. Through framework simulations, Schwab illustrated how the Plan could help deliver a diversified portfolio designed to have potentially less risk at a lower cost than it was previously paying and still address its liability needs.
“We are so pleased to be part of a program that supports a key planning need for families in such a unique way,” said Omar Aguilar, Chief Investment Officer, Passive Equity and Multi-Asset Strategies at CSIM. “Our goal is to support Private College 529 in its mission to make private college education more affordable.”
Private College 529 Plan President Bob Cole said it was important to also take advantage of new opportunities. “Intuition’s focus on online service is what our families and schools expect in this digital age,” Cole noted. “Schwab’s low-cost investments benefit our colleges and universities, and we look forward to serving as a college savings resource for families who work with Schwab and the independent registered investment advisors it supports.”
About Private College 529 Plan
Private College 529 Plan launched in 2003. It is authorized under Section 529 of the Internal Revenue Code. It is the only 529 plan not operated by a state government. Private College 529 is owned by nearly 300 private colleges and universities nationwide. The institutions offer prepaid tuition that can be used at any member or any that join in the future. Ownership of a Private College 529 account does not guarantee admission to any institution or affect the admissions process.
About Intuition College Savings Solutions
Intuition College Savings Solutions is the leading provider in the 529 industry, focused exclusively on development of premiere solutions for this marketplace for over 30 years. Our team of seasoned experts, coupled with Align529™ – our proprietary, adaptable platform – allows us to continually deliver on our vision of providing the best innovative online experience and customer support in the industry. ICSS currently administers eleven 529 plans with over one million accounts from our offices in Jacksonville and Tallahassee, Florida. For more information about Intuition College Savings Solutions and Align529™, visit our website at intuitioncss.com or email us at firstname.lastname@example.org.
About Charles Schwab Investment Management, Inc.
With a straightforward lineup of core products and solutions for building the foundation of a portfolio, Charles Schwab Investment Management advocates for investors of all sizes with a steadfast focus on lowering costs and reducing unnecessary complexity. As of December 31, 2019, Charles Schwab Investment Management managed approximately $468.9 billion on a discretionary basis and approximately $18.1 billion on a non-discretionary basis. More information is available at www.schwabfunds.com.