The Massachusetts Educational Financing Authority has decided to continue its relationship with Fidelity for its U.Fund College Investing Plan. The new contract runs until 2014, with possible renewals through 2019.

MEFA earlier this year issued RFPs for the U.Fund College Investing Plan and the U.Plan Prepaid Tuition Program.

Fidelity has served as program manager for the U.Fund College Investing Plan since 1999. The plan counts more than 145,000 accounts totaling more than $2.5 billion in assets.

"Fidelity's proposal significantly expands MEFA's business model to assist families paying for college and promotes access to higher education through expanded outreach," said MEFA executive director Thomas Graf in a news release.

Enhancements to the plan, which will be rolled out later this year, will include broader investment options, changes to product and investment design and low cost pricing, MEFA officials said.

Besides managing the plan, Fidelity will also continue to support the U.Plan Prepaid Tuition Program.

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Company Press Release

BOSTON – The Board of Directors of the Massachusetts Educational Financing Authority (MEFA) unanimously voted yesterday afternoon to select Fidelity Investments as the program manager for its U.Fund College Investing Plan. The vote follows the issuance earlier this year of a Request for Proposals and Qualifications for Program Services for MEFA's U.Fund College Investing Plan and MEFA's U.Plan Prepaid Tuition Program.

The U.Fund College Investing Plan, the Massachusetts section 529 college savings program, combines significant tax advantages with professional investment management, making the U.Fund a flexible and affordable way to save for college. Since 1999, MEFA and Fidelity have grown the U.Fund 529 College Investing Plan to more than 145,000 accounts totaling over $2.5 billion in assets for families saving for future college expenses.

"MEFA’s mission to serve families across the Commonwealth will be further enhanced by Fidelity Investments’ commitment to the overall financial wellness of investors,” said Thomas Graf, MEFA Executive Director. “Fidelity’s proposal significantly expands MEFA’s business model to assist families paying for college and promotes access to higher education through expanded outreach."

MEFA and Fidelity plan to announce the U.Fund College Investing Plan enhancements – including broader investment options, changes to the product and investment design, and low cost pricing to help parents save more – later in the year, subject to execution of a satisfactory contract. The new contract is expected to cover a term through 2014, with possible renewals through 2019.

“Fidelity is pleased to have been chosen once again by MEFA as its 529 plan manager,” said Kathleen A. Murphy, President, Personal Investing, Fidelity Investments. “The renewal of this partnership is validation of the great work that Fidelity and MEFA have accomplished over the last 10 years and we look forward to furthering our mission of making a college education an attainable goal for children both in Massachusetts and across the country.”

In addition to managing the U.Fund College Investing Plan, Fidelity will continue to support the U.Plan Prepaid Tuition Program, which allows families to save for an undergraduate education at 80 participating Massachusetts public and private colleges and universities. The U.Plan allows families to pre-pay up to 100 percent of a child's future tuition and fees at today's rates.

MEFA offers two college savings programs – the U.Fund College Investing Plan and the U.Plan Prepaid Tuition Program – as part of its mission to make higher education more accessible and affordable for families. MEFA also provides community education programs across the Commonwealth and affordable higher education loans for families of undergraduates and graduate students. In its nearly thirty year history, MEFA has assisted hundreds of thousands of families in financing a college education.

 

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