Montana Guaranteed Student Loan Program - 529 College Savings Plan

Home » Paying For College » 529 College Savings Plan

529 College Savings Plan

The Montana Family Education Savings Program, or MFESP, is a state sponsored 529 savings plan. Named after section 529 of the Internal Revenue Code, 529 plans are tax advantaged savings vehicles, designed to encourage the saving of money for higher education purposes. With a 529, contributions are allowed to grow tax free, while at the same time allowing for tax free disbursements when assets are utilized at a qualified educational institution world-wide. An account can be opened for as little as $250 for CD's and $500 for mutual funds, plus you can sign up for a direct deposit from payroll of as little as $50 per pay period ($25 per pay period for large organizations) or automatic deposits of $100 or more per month from your bank account. For Montana residents, contributions up to $3,000 ($6,000 if married, filing jointly) may be deducted annually from Montana adjusted gross income, with no recapture on withdrawals from accounts opened at least three years when they are used to pay qualified higher education expenses.

The MFESP currently offers three avenues of investments to choose from. Individuals may invest in College Sure CDs from College Savings Bank, InvestorSure CDs from College Savings Bank, or they can invest in up to 5 Pacific Life fund of funds, which offer up to 11 asset classes, 12 investment managers, and 16 underlying funds with over 1,000 unique holdings. Portfolio models range from Conservative to Aggressive and can be purchased directly from Pacific Life, or through a financial advisor. Investment in a Pacific Life money market fund is also an option.

The MFESP offers low fees ranging from 0% for the CollegeSure, InvestorSure CDs, and Fixed Rate CDs, which are FDIC insured for up to $100,000, to 1.18% - 1.44% for Pacific Life Mutual Funds, depending on which model is invested in. The following table provides a list of fees for each investment option offered through MFESP:

MFESP Product	Cost/Fees
CollegeSure CD	0%
InvestorSure CD	0%
Fixed Rate CD	0%
PL Conservative	1.19%
PL Moderate - Conservative	1.26%
PL Moderate	1.33%
PL Moderate - Aggressive	1.38%
PL Aggressive	1.43%

Montana Investors may purchase options directly from Pacific Life and College Savings Bank without incurring a front end sales charge.

An investor who chooses to purchase through an advisor should expect to pay their broker up to an additional 5.5% sales charge on Pacific Life products. The College Sure CD remains a fee free option even when purchasing through an advisor.

For more information visit the MFESP website or contact:

College Savings Bank at 1-800-888-2723 or via email

Pacific Life Funds at 1-800-722-2333 or via Online Contact Form

or write to the following address:

Montana Family Education Savings Program
P.O. Box 1732
Helena, MT 59624-9979

or see the Montana 529 F.A.Q.