College Savings Iowa Lowers Expenses

DES MOINES, IA (09/22/2010)(readMedia)-- State Treasurer Michael Fitzgerald announced today that the College Savings Iowa 529 Plan has reduced expenses for plan participants by one third. The annual asset-based fee on the plan's entire lineup of investment options has been reduced from 0.50% to 0.34%. The reduction will become effective on October 15, 2010.

College Savings Iowa makes it simple by offering all of its thirteen investment options at the same affordable price. With no additional account fees, the plan's all-in 0.34% expense puts it among the most competitive 529 plans available to college savers nationwide.

"College Savings Iowa has grown to over $2.2 billion in assets due to its nationwide appeal," Fitzgerald stated. "That growth has given us the ability to continue to lower the expenses, which allows investors to keep more money working toward their college savings goals."

The plan has a history of lowering expenses; since 2007, a series of expense reductions have lowered the all-in costs of each of the plan's investment options from 0.62% to 0.34% today.

"We're pleased to help deliver savings to College Savings Iowa investors," said Vanguard Chairman and CEO Bill McNabb.

College Savings Iowa has continually received high marks from organizations rating 529 plans across the nation, including Savingforcollege.com and Morningstar, which each rate 529 plans across the nation. Additionally, HLN money expert Clark Howard recently named the 529 plan as one of the top three in the country.

College Savings Iowa is designed to provide families a tax-advantaged way to save money for their children's higher education. The plan lets anyone – parents, grandparents, friends and relatives – invest for college. Iowa taxpayers can deduct up to $2,811 in contributions per beneficiary account from their adjusted gross income in 2010.* Investors do not need to be a state resident and can withdraw their investment tax-free to pay for qualified higher education expenses including tuition, books, supplies and room and board at any eligible college, university, community college or accredited technical training school in the United States or abroad.** Participants in College Savings Iowa can also take advantage of Upromise®, which enables families to earn cash rewards from their everyday spending.*** For more information about College Savings Iowa, visit www.collegesavingsiowa.com or call 1-888-672-9116.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the nation's largest mutual fund firms and a leading provider of 529 college savings plans. Vanguard manages nearly $1.4 trillion in U.S. mutual fund assets, including nearly $28 billion in 529 plan assets invested in 26 plans in 25 states. Vanguard offers more than 150 funds to U.S. investors and more than 50 additional funds in non-U.S. markets. For more information, visit www.vanguard.com.

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All figures are as of August 31, 2010, unless otherwise noted.

*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.

** Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state income taxes. The availability of tax or other benefits may be contingent on meeting other requirements

*** Upromise is an optional service offered by Upromise, Inc., is separate from College Savings Iowa 529 Plan (Plan), and is not affiliated with the State of Iowa. Specific terms and conditions apply. Participating companies, contribution levels, terms and conditions subject to change without notice. Transfers subject to $25 minimum.

For more information about the College Savings Iowa 529 Plan, call 888-672-9116 or visit www.collegesavingsiowa.com to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.

If you are not an Iowa taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

The College Savings Iowa 529 Plan is an Iowa trust sponsored by the Iowa State Treasurer's office. The Treasurer of the State of Iowa sponsors and is responsible for overseeing the administration of the College Savings Iowa 529 Plan. The Vanguard Group, Inc., serves as Investment Manager and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists the Treasurer with marketing and distributing the Plan. Upromise Investment Advisors, LLC provides records administration services. The plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds.

Investment returns are not guaranteed, and you could lose money by investing in the plan. Account owners assume all investment risks, including the potential for loss of principal, as well as responsibility for any federal and state tax consequences. Diversification does not ensure a profit or protect against a loss in a declining market.

Upromise and the Upromise logo are registered service marks of Upromise, Inc.