Comparing 529 Ratings: Morningstar vs. Saving For College – Key Differences Explained

If you’ve been searching online for ratings of 529 plans, you’ve likely found the two major sources of plan ratings to be Morningstar and Saving For College. How are they different? Which one matches your criteria for selecting a 529 plan to cover your education expenses?

Here’s how each of these rating systems compares.

How does Morningstar rate 529 plans?

Morningstar rates 529 plans based on their potential to generate superior investment returns in the future. The company has been assigning ratings to various types of investments since 2011, with the most recent ratings released in November 2025.

The Morningstar Medalist Ratings(™) classify 529s into one of five rating categories based on four pillars:

• People: Evaluation of the strategy’s management team
• Process: Analysis of the underlying investment approach
• Parent: Assessment of the parent firm’s capabilities
• Price: Overall investment expense considerations

The final rating (Gold, Silver, Bronze, Neutral, or Negative) assesses the 529 plan’s future ability to generate a positive “alpha” net of investment fees. Alpha represents extra performance return over and above a similar average investment vehicle, so Morningstar is essentially rating 529 plans on the ability to generate superior investment performance.

The most recent Morningstar ratings awarded Gold to five plans and Silver to 13 plans.

How does Saving For College rate 529 plans?

Saving For College rates 529 plans using a comprehensive approach that considers both investment performance and the overall consumer experience. Since its launch in 1999, Saving For College has published ratings using a weighted multi-category approach designed for 529 buyers who may be inexperienced investors.

Saving For College evaluates plans based on four key categories:

1. Performance: Based on the Saving For College quarterly 529 Performance Rankings, which uses age-based and year-of-enrollment portfolios to compare and analyze historic investment returns among 529 plans.
2. Ease of Use: Evaluates the simplicity of enrolling in the plan, making contributions, and accessing accounts from any device.
3. Savings Success: Measures how well a plan’s features and fee structure enable savers to maximize their education savings. Positive factors include robust gifting platforms and savings-promoting features. Negative factors include annual or one-time fees that reduce account balances.
4. Program Delivery: Assesses the likelihood that a 529 program will continue to deliver excellence, including program manager tenure, risk of management changes, and customer service quality.

The final rating uses a numerical 1-5 “cap” score, plus awards for Top of the Class, High Honors, and Honors. This score assesses the overall attractiveness of a 529 college savings plan compared to similar plans. Advisor-sold plans are rated using different criteria than direct-to-consumer 529s.

Does Saving For College rate state tax benefits?

Yes. The Saving For College ratings include a separate Resident Benefits assessment for 529 buyers considering their home state’s plan. This helps families understand whether their state’s tax deduction or credit makes the in-state plan more attractive despite other factors. You can view the lastest 529 Ratings here.

Morningstar vs. Saving For College: Side-by-side comparison

Key Takeaways

• Morningstar rates 529 plans primarily on future investment performance potential using its four-pillar approach (People, Process, Parent, Price)
• Saving For College uses a broader methodology including performance, ease of use, savings success, and program delivery
• Only Saving For College assesses state resident benefits and tax advantages
• Saving For College rates more plans (85 vs. 59) and distinguishes between direct-sold and advisor-sold plans
• Using both rating systems together provides the most comprehensive view when selecting a 529 plan

Frequently Asked Questions