The state of Illinois, in its selection of Citigroup to manage its 529 plan, opted for high fees and disadvantageous options for parents and students looking to save for college, according to Morningstar analyst Russel Kinnel.

By bypassing low-cost options like Vanguard and T. Rowe Price , Illinois made a great decision for powerful banks (namely Citigroup) and elected officials (considering the state makes money off the 529 fees).

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