Website ranks Michigan Education Savings Program’s 1-year performance tops in the nation

LANSING – The Michigan Education Savings Program (MESP) produced the best investment performance among all direct-sold state-sponsored 529 college savings plans nationwide in the 12 months ended June 30, according to SavingForCollege.com.

SavingForCollege.com, an independent company that aims to promote understanding of the challenge of paying for higher education costs, also ranked MESP as the fourth-best performer over three years and the sixth-best over both five and 10 years in its quarterly review of 529 savings plans.

“While it’s an honor to receive national recognition for MESP’s investment achievements, the real satisfaction comes from knowing that the plan has succeeded in helping thousands of families save for college,” said Robin Lott, MESP administrator for the Michigan Department of Treasury.

More than 50 plans were analyzed in SavingForCollege.com’s rankings, which were based on a comparison of each plan’s portfolio. Portfolios were selected based on their mix of stocks, bonds and money market funds, which allowed for an apples-to-apples comparison in seven asset categories, the website states.

Each plan’s composite ranking is determined by the average of its percentile ranking in the seven categories, SavingForCollege.com says.

Direct-sold 529 plans – named after Section 529 of the Internal Revenue Code, which created these types of savings plans – are those that investors can enroll in without using a broker.

MESP is one of three Michigan Section 529 plans. The others are Michigan Education Trust (MET), a prepaid tuition plan that allows for the purchase of tuition based on today’s rates, and MI 529 Advisor (MAP), a savings plan offered through financial advisers that includes various investment options.

Each plan provides Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on earnings if account proceeds are used to pay for qualified higher education expenses.

MESP can be used at any eligible college, university or trade school in the nation and some abroad for a variety of qualified higher education expenses, including tuition, fees, certain room and board costs, books, computers, supplies and equipment required for enrollment.

The plan, which since its inception in 2000 has been managed by TIAA-CREF Tuition Financing Inc., today has more than 230,000 accounts with combined assets $4.43 billion.

More information about MESP is available at MIsaves.com or 877-861-6377.