CHICAGO – The Oklahoma College Savings Plan, a state-sponsored program that helps students save money for college, received a bronze rating in Morningstar Analysts’ ranking of the nation’s largest college-savings plans.
Oklahoma’s plan previously received a neutral rating from Morningstar, a company which conducts independent investment research.
Morningstar has updated its ratings for 61 of the nation’s largest college-savings plans, the company said in a news release. Those plans represent about 97% of the more than $363 billion in 529 plan assets as of Aug. 30.
A 529 plan is a tax-advantaged savings plan designed to encourage people to save for their future education expenses. Those plans are sponsored by states, state agencies or educational institutions and are authorized by Section 529 of the Internal Revenue Code.
Morningstar’s ratings give investors a tool for assessing 529 plan options. Ratings are based on four factors, including the design of the plan’s investment options.
The analysts assign Gold, Silver or Bronze ratings to plans with investment options that are likely to do well and offer participants a good experience, according to the news release. Neutral ratings are assigned to plans that are unlikely to outperform others, and negative ratings go to plans that have at least one major flaw.