Pennacchio: Corzine Administration Dawdling Costly to College Savers

By Andrew Pratt

Senator Joe Pennacchio said he is frustrated that the Corzine administration is dragging its feet on reforms of the state’s NJBest college savings plan that would lower expenses for struggling middle class families. Representatives of Franklin Templeton, the administrator of the plan, met with the senator months ago and said that they would recommend lower fees and expanded investment choices that eliminate unnecessary risk for college savers. The New Jersey Higher Education Student Assistance Authority has yet to announce it has adopted the reforms that Franklin Templeton has proposed.

“Morningstar rated NJBest as one of the five worst 529 college savings plans in the nation because of its high fees and overly risky investment choices,” Senator Pennacchio said. “To their great credit, the managers at Franklin Templeton have come up with a plan that addresses some of my concerns about Morningstar’s report. It’s a mystery to me how the Corzine administration can justify dragging its feet in adopting these reforms.

“The cost of college has soared, and the Corzine administration has not contained costs at taxpayer supported colleges and universities. Parents will pay record tuition this year. The least the Corzine administration can do is act quickly on proposals that will reduce the cost of saving to pay these huge college bills.”