Morningstar Announces Top 529 College Savings Plans for 2025

CHICAGO, Ill. — Morningstar’s analysts released their annual rankings today, evaluating 59 prominent 529 college savings plans, which manage over 90% of industry assets. This year’s rankings highlighted five plans earning the elite ‘Gold Medalist’ rating: Alaska, Illinois, Massachusetts, Pennsylvania, and Utah.

According to Morningstar, these plans stand out for their exceptional state stewardship of investor capital and well-constructed portfolios managed by capable investment teams. Only 31 plans received Morningstar Medalist Ratings of Gold, Silver, or Bronze this year.

Morningstar assigns these forward-looking ratings based on each plan’s investment strategy compared to its peers. Among the five recognized plans, Illinois was noted for offering a wide range of cost-effective investment options. Massachusetts showcased its diverse portfolio constructions, while Alaska’s plan benefits from a long-term partnership with T. Rowe Price.

The Pennsylvania Treasury Department continues to impress with effective governance, ensuring long-term continuity, while Utah offers custom age-based portfolios to help investors create personalized glide paths.

With 31 plans receiving recognition, Morningstar’s report emphasized several factors contributing to the plans’ success: thorough asset-allocation strategies, a diligent process for selecting and tracking investments, experienced investment teams, engaged state oversight, and low fees.

This year’s rankings not only reflect the stability of established plans but also highlight some upgrades and downgrades among the plans. Morningstar’s insights aim to guide families making decisions for their educational savings.