Vanguard is reducing the fees on its offerings in the Vanguard 529 College Savings Plan, sponsored by Nevada, by 10 to 12 basis points, the company announced Thursday. As a result, investors will save more than $2 million a year, Vanguard estimated.

Once the reductions become effective on Dec. 1, the costs on 11 of the 22 investment choices, including the three popular age-based options, will be 50 basis points, with the remaining choices costing no more than 70 basis points.

“College savers have entrusted more than $2 billion to the Vanguard 529 College Savings Plan since its introduction in December 2002, making it one of the largest 529 plans in the country,” said Vanguard CEO John J. Brennan. “This considerable growth drives economies of scale, and we are pleased to share these savings with plan participants in the form of lower expenses.”

This is the third time in two years that Vanguard has lowered fees on its 529 offerings.

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