LR 198 proposed to examine why Nebraska’s plans lag behind those of other states.

Press Release
May 18, 2009

LINCOLN, Neb. – State Senator Jeremy Nordquist introduced an interim study resolution today aimed at examining why Nebraska’s 529 college savings plans are not performing as well as those in other states.

“Rising tuition costs and a troubled economy makes long-term planning more important than ever, and 529 college savings plans can be a great resource for families wishing to plan ahead,” said Senator Jeremy Nordquist. “But by offering low-performing, low-rated plans, our state isn’t doing financially-responsible families any favors.”

According to recent analysis by Morningstar, two of Nebraska’s plans rated among the worst five in the country. No other state had two plans ranking in the bottom five.

“We need to make sure that our citizens can count on the state government to select safe, high-performing plans,” said Nordquist. “It’s understandable that the current economic climate has proven difficult for plan administrators, but we need to be sure we’re taking every step necessary to fix the problem. This is an issue that directly affects a family’s pocketbook, and Nebraskans can’t afford further inaction by their government.”

Source: “The Best and Worst 529 College-Savings Plans,” Morningstar. April 23, 2009.