MESP Plan Reaches $10 Billion in Assets. Plan Lowers Program Management Fee (…again!)

Michigan’s direct-sold 529 College Savings Plan, the Michigan Education Savings Program (MESP), has reached a significant milestone of $10 billion in assets under management, triggering a reduction of the plan’s program management fee to just 0.01% (1 basis point). Effective May 4 for all current MESP account owners, this lower fee ensures that an even greater share of every dollar saved will go toward future higher education expenses for Michigan families. Michigan’s plan manager fee was previously 0.02%; the 1-basis-point drop to 0.01% is expected to save account owners a combined total of more than $1 million per year in fees.

"Reaching this milestone reflects the trust and commitment that hundreds of thousands of families have in the Michigan Education Savings Program. It underscores the growing strength and stability of the Program, as larger asset pools create economies of scale, that reduce administrative costs and improve overall plan efficiency," says Megan Patino, Executive Director of MET and Program Administrator for MESP. "With more than $10 billion now invested, MESP is not only helping families stretch their dollar further, but also reinforcing its status as a competitive, low-cost savings vehicle on the national stage."

"MESP's remarkable growth demonstrates the confidence Michigan families have in this program," said Chris Lynch, President of the Education Savings Division in TIAA-CREF Tuition Financing, Inc., the plan manager for MESP. "At TIAA, we are proud to partner with Michigan Education Trust to deliver one of the country's premier low-cost college savings programs. By reducing our program management fee to just 1 basis point, we’re reinforcing our commitment to provide outstanding value to MESP account owners and to encourage even more families to save for higher education with confidence."