Arizona is among the states with the worst 529 college savings plan, according to the most recent Morningstar rating, but the plan's director thinks it wasn't accurately evaluated.
"It's disappointing that Morningstar is unable to look at the program as a whole," said April Osborn, executive director of the Arizona Commission for Postsecondary Education, in a report from The Arizona Republic. "We feel we're making so many positive improvements."
Morningstar rates 529 plans based on expenses, costs, investment results, underlying assets and investor flexibility and options.
"Had the plan been evaluated as a whole, one would find these [criticisms] not true," Osborn added. She also made the point that the Arizona plan offers the widest array of investment options.
Arizona will be reviewing its contracts with all firms, besides Fidelity, the Boston-based mutual fund giant.
"The two providers named by Morningstar will need to answer to [our] oversight committee regarding their poor reviews," said Osborn.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.