Top nine low cost 529 plans ranked by fees and expense ratios

College tuition isn’t the only bill racing higher—529 fees quietly erode growth. A 0.50 percent expense ratio can siphon away thousands over 18 years.

Thanks to Secure 2.0, any unused 529 dollars can roll into a beneficiary’s Roth IRA tax- and penalty-free starting in 2024, according to CNBC. Every basis point you avoid now amplifies that new flexibility.

We compared every direct-sold 529 plan nationwide and ranked the nine with the lowest all-in costs. One standout—Illinois’ Bright Start—pairs rock-bottom fees with a generous state tax break.

Ready to keep more of what you save? Let’s dive in.

How we picked the nine cheapest plans

We began with one question: Which 529 plans keep the most money working for your child instead of covering extra overhead?

Our team consulted the latest Savingforcollege 529 Fee Study, which projects the dollars you would pay over ten years on a $10,000 balance, assuming a steady 5 percent return. The study rolls the state program fee, the manager’s charge, and the underlying fund expenses into one bottom-line figure.

Plans were ranked strictly by that ten-year cost; lowest cost wins. Advisor-sold options stayed on the sideline because sales commissions blur the real price. When two plans shared the same minimum cost, we called it a tie and limited the list to nine for clarity.

Because of this all-in cost filter, every plan in the next section lands well below the national average, and a few approach zero.

The nine winners at a glance

Before we unpack each plan, here’s the scorecard. The dollar figure shows what a $10,000 balance pays in fees over ten years when invested in the plan’s lowest-cost portfolio. Lower is better.

Notice the spread. Even the costliest plan on our list still undercuts the national average, while the cheapest plan waives every penny. Next, we’ll explain what those numbers mean for you.

1. START Saving Program, Louisiana

Louisiana’s resident-only START plan waives every asset-based fee on its principal-protected portfolio, so a ten-year $10,000 investment pays $0 in expenses, according to the Savingforcollege fee study. Any earnings stay in your child’s account.

Louisiana START Saving Program official 529 plan website screenshot

Low cost does not mean limited choice. Age-based index tracks still price near 0.26 percent a year, well below the national average. Add Louisiana’s state-income-tax deduction, and residents enjoy a double benefit.

Location is the only hurdle. Families outside Louisiana cannot open the direct plan, so use START as a benchmark. If you live in the Pelican State, it is an easy yes: set up the account, automate contributions, and let every dollar grow for college.

2. Florida 529 Savings Plan

If you want rock-bottom costs but live outside Louisiana, Florida’s plan is the next best choice. Its lowest-priced index portfolio costs $25 over ten years on a $10,000 balance, according to the Savingforcollege fee study.

Florida keeps expenses low by offering a streamlined mix of Vanguard and BlackRock index funds and charging no enrollment or maintenance fees. Because the state has no income tax, there is no deduction to consider; cost efficiency is the main story for residents and non-residents alike.

Anyone in any state can open an account online in minutes and enjoy minimal fee drag. Consider another plan only if your home state offers a sizable tax benefit that outweighs Florida’s cost advantage.

3. Future Scholar 529, South Carolina

South Carolina’s Future Scholar matches Florida on cost. A $10,000 balance invested in the plan’s lowest-cost age-based index track pays $26 in fees over ten years—about 0.26 percent a year, according to the Savingforcollege fee study.

Residents enjoy an unlimited state-income-tax deduction on every contribution. Pair that write-off with minimal expenses, and your savings grow tax-advantaged from start to finish.

The lineup stays straightforward. Three age-based index portfolios cover conservative, moderate, and aggressive glides, while a bank-deposit option protects principal for families who prioritize safety.

Only South Carolina residents can open the direct plan; others must consider different programs or the higher-cost advisor version. If you live in the Palmetto State, Future Scholar delivers rare value at every stage of college saving.

4. ScholarShare 529, California

California shows that a strong plan does not need a state tax break. ScholarShare’s passive age-based portfolio costs $51 over ten years on a $10,000 balance—about 0.17 percent a year—according to the Savingforcollege fee study.

Default tracks invest in Vanguard and TIAA index funds, so performance closely matches market returns and expenses stay low. Investors can also choose single-fund options, an FDIC-insured cash sleeve, or a higher-priced active track.

Because California taxes withdrawals from out-of-state 529s, many residents stay local. ScholarShare rewards that choice with low fees, user-friendly online tools, and no enrollment or maintenance charges. If your state offers no deduction or you prefer simple indexing, keep this plan on your shortlist.

5. Path2College 529 Plan, Georgia

Georgia’s Path2College charges $77 over ten years on a $10,000 balance—about 0.25 percent a year—according to the Savingforcollege fee study. The principal-protected Guaranteed Option costs even less, though returns follow bank-deposit rates.

State residents receive an additional boost: up to $4,000 per beneficiary ($8,000 for married filers) reduces Georgia taxable income each year. That deduction can offset the small fee gap between Path2College and the ultra-low-cost leaders above.

TIAA manages the plan, so portfolios lean on low-expense index funds. Online enrollment is simple, and there are no maintenance charges. If you live in Georgia, Path2College offers strong value without added complexity.

6. Michigan Education Savings Program, Michigan

Michigan follows the low-cost indexing model. Its cheapest enrollment-year portfolio costs $84 over ten years on a $10,000 balance—about 0.28 percent annually—according to the Savingforcollege fee study. The glide path relies on TIAA and Vanguard index funds and rebalances automatically as college nears.

State residents can deduct up to $10,000 in annual contributions from Michigan taxable income. When combined with sub-0.30 percent expenses, the plan delivers savings up front and lower drag while the account grows.

MESP also offers a stable-value option that guarantees principal and pays a competitive rate with minimal fees. The platform lists costs clearly, and there are no maintenance charges. If you live in Michigan, MESP is a strong default. Out-of-state savers who want straightforward indexing at a modest price should also consider it.

7. Invest529, Virginia

Virginia’s Invest529 charges $86 over ten years on a $10,000 balance—about 0.29 percent a year—according to the Savingforcollege fee study. Despite the low cost, the plan offers a wide menu that includes index tracks, specialty active funds, and an FDIC-insured savings option.

Residents can deduct up to $4,000 per account from Virginia taxable income each year, and there is no contribution cap after age seventy. Out-of-state investors often choose Invest529 for its flexibility and transparent pricing.

Enroll online to avoid a one-time paper application fee. Select the index portfolio you prefer and bypass higher-priced options unless you need them. With that approach, Invest529 delivers low costs, diverse choices, and a user experience refined by scale.

8. Bright Start 529, Illinois

Bright Start combines low fees with strong oversight. The index Target Enrollment track costs $103 over ten years on a $10,000 balance, about 0.34 percent a year, according to the Savingforcollege fee study. Morningstar assigns the plan a Gold rating for process and stewardship.

Bright Start Illinois 529 college savings plan official website screenshot

Illinois taxpayers can deduct up to $10,000 in annual contributions ($20,000 for joint filers), a benefit that often outweighs the modest fee difference versus cheaper out-of-state plans.

You may choose all-index portfolios, mix in selected active funds, or rely on an automatic glide path that moves toward bonds as college approaches. The plan lists every expense clearly, and customer service scores improved after a recent fee reduction.

For an expanded look at how the plan’s triple tax advantage works (state contribution deductions, tax-deferred growth, and tax-free qualified withdrawals), see the Bright Start 529 College Savings Plan Benefits page on the official site.

Even non-residents may find the plan’s disciplined design and moderate pricing attractive.

9. Edvest 529, Wisconsin

Edvest finishes our list with costs that remain below the national average. The lowest-priced index portfolio charges $128 over ten years on a $10,000 balance—about 0.43 percent a year—according to the Savingforcollege fee study.

Wisconsin residents can also deduct $3,860 per beneficiary each year from state taxable income. For many families, that immediate tax savings offsets the small fee difference versus the very cheapest plans above.

The platform offers clear dashboards, no maintenance fees, and age-based tracks that gradually reduce risk as college nears. A socially responsible equity option and a stable-value portfolio add flexibility without raising costs significantly.

For Wisconsin households, Edvest is a logical first stop. Out-of-state savers who want access to Dimensional funds or another low-fee, straightforward choice may also find value here.

Making sense of the fee gaps

The raw numbers matter only when placed in context. Moving from Louisiana’s zero-fee benchmark to Wisconsin’s $128 total cost equals roughly $13 per year on a $10,000 balance. On a more typical $50,000 account, the difference is still only about $65 per year, which adds up over eighteen years of compounding but rarely breaks a budget.

Tax benefits shift the math further. In Illinois, a $10,000 contribution saves about $500 in state tax at a five-percent rate. That single deduction covers eight years of Bright Start’s annual expenses. In states without a deduction, such as California, fees become the decisive factor; every basis point you avoid stays in your child’s college fund.

Once expenses fall below roughly 0.40 percent, the gap between good and great narrows quickly. Start by evaluating your own state’s tax break. If it is generous and the plan costs less than 0.40 percent, you are in a strong position. If your state offers no incentive or the plan is expensive, consider one of the national low-fee options listed above to keep more money working for you.

FAQs about 529 fees and choices

Are 529 plan fees tax-deductible?

No. Fees reduce the account’s earnings; you cannot deduct them on your return. The real tax benefit comes when you contribute, because many states let you deduct or credit those dollars up front.

Do higher-cost plans ever make sense?

Yes, when the extra cost is offset by a sizable incentive. A large state tax deduction or a unique matching grant can outweigh an additional 0.20–0.30 percent in annual fees. Compare the after-tax numbers before leaving your home-state plan.

Can I open more than one 529?

Yes. Many families contribute to their in-state plan up to the deduction limit, then direct extra savings to a national low-fee option. You may roll money between plans once every 12 months if your needs change.

What if my plan raises fees later?

State contracts renew every few years, and the long-term trend is lower costs. If your plan increases its fee, you can complete a tax-free rollover to any other state plan and keep your strategy on track.

Do 529 fees affect financial aid?

Not directly. FAFSA calculations consider the account balance after fees, so lower costs simply mean a higher balance, which generally improves your funding position.

Conclusion

Low fees and the right tax incentives can supercharge your college savings. Start by checking your own state’s deduction; if it pairs with a sub-0.40 percent expense ratio, you likely already have a winner. Otherwise, any of the nine plans above will keep more of your money compounding for your child’s education and, thanks to recent rule changes, potentially even their retirement.