Frequently Asked Questions

How much does Gradvisor cost?

Gradvisor charges on a tiered pricing model dependent on 2 variables: The total amount of employees in your company and the amount of users who join the platform after roll out. The pricing can be seen below.

# of Benefit Eligible EmployeesSetup FeeOngoing Fees Per User Per MonthMinimum Monthly Charge
1 - 100$2,000$8$50
101 - 500$3,000$5$200
500+$4,000$4$400

Who is Gradvisor?

Gradvisor is an SEC registered RIA that is revolutionizing college savings with its state of the art 529 college investment digital investment platform that allows employers to include college savings plans in their benefit package. The algorithm, coupled with human advisor support, helps employees understand and maximize their college savings.

The Gradvisor team has a wealth of college savings experience, with a team that spun-off from Savingforcollege.com, the 17 year leader in college savings information that provides college savings data and tools to the top leading financial institutions.

What does the set-up fees cover?

Gradvisor will white-label your platform with your company’s logo. All potential employees will be onboarded. You will also received customized marketing materials, a communications strategy, and payroll deduction facilitation.

Doesn’t this only cover a small segment of my employees?

529 plans can be opened by anyone, not just parents. Many accounts are opened for nieces, nephews, grandchildren and even those wanting to further their own education.

Can Gradvisor be integrated into my current employee benefits platform?

Gradvisor has been designed to be as integrated as you would like it to be. It can be its own freestanding, white-labeled website, it can merely be a link inside your benefits platform or be fully integrated. You choose the level of integration you would like and Gradvisor’s implementation team will handle the rest.

Does Gradvisor have to be rolled-out during open enrollment?

No. Gradvisor can be introduced as part of your broader benefits package during open enrollment or it can be an off-cycle benefit. Some of our clients have actually discovered that introducing it outside of open enrollment increases their employee’s receptiveness due to “less noise”.

How long does implementation take?

Implementation is easy. You decide when to implement the benefit—either at open enrollment or off-cycle. With our turnkey program we can have you up and running in no time. You also have the option of payroll deduction. Payroll deduction implementation is also very efficient and we’ll develop a timeline that fits your needs.

What materials do you provide?

We provide everything your team and your employees need in order to get the most out of the Gradvisor platform. We provide brochures for new hire kits, one-page overviews for easy disbursement, posters for break rooms as well as an entire participation and engagement campaign. Each company also receives a customized educational webinar for both employees and administrators.

Do I need to create a marketing campaign?

No. Gradvisor has a complete user participation and engagement participation that will be customized to your company’s specific employee base. The campaign can be handled by the Gradvisor implementation team or the materials can be passed to you to distribute to your employees as you see fit.

Who handles any questions my employee has?

All questions are handled by Gradvisor. We have a complete staff for general inquiries, technical support as well as advisory support from our in-house financial advisors.

What is my company’s fiduciary responsibility?

Unlike your traditional 401(k), 529 plans are not group plans, but individual plans. This removes fiduciary responsibility from the employer.

Are 529 plan accounts subject to ERISA?

No. 529 plan accounts are held in the individual employee’s name, so they are not group accounts. This means they are not subject to ERISA?

Are 529 plans subject to any auditing or nondiscriminatory testing?

No. Employers will not have to fill out a form 5500. Nor is there any type of nondiscrimination/ top heavy testing needed.

If an employee is let go, what happens to their Gradvisor account and 529 plan?

You can simply remove the employee from the platform from the Employer Dashboard by unchecking their name from the list of participants. This does NOT impact their 529 plan at all, only their access to the Parent Dashboard through the Gradvisor system. Their 529 plan will still be intact with all funds invested in the plan. If the employees new company is a Gradvisor client, they can re-link their account with us. Payroll deduction will cease and the employee will have an option to set up automatic debit, if they choose to do so, which would be handled directly by Program Manager for that 529 plan.

What do you do with my responses to the questionnaire?

Gradvisor uses your responses to assess your personal college savings needs, determine your risk tolerance (the level of risk of loss you're willing and able to tolerate in order to achieve your investment goals) and place you into a risk tolerance tier.

This information, together with the other responses you provide, is entered into a state-of-the-art algorithm that chooses the optimal plan for you based on your specific situation and savings goals.

The information you provide is encrypted, and we always safeguard the privacy of your information. To learn more, please read our Privacy Policy and Terms of Use.

How do you rank each state’s 529 plan?

Gradvisor has worked hard to create a proprietary algorithm which takes into account a fund’s fees, your state of residence, tax bracket, age of beneficiary and risk tolerance. This information is compiled to recommend the most optimal 529 plans for you.

For more information, please read our Investment Methodology Whitepaper.

Do I have to open my own state's 529 plan?

No. You are able to use any state’s plan no matter where you reside. Many people do choose to use their own state’s plan, however, because their state may offer tax incentives for residents. Gradvisor's algorithm considers the value of any state tax deduction you may be eligible for in generating a recommendation.

Are 529 Plans only for my state's public colleges?

No. Funds in a 529 savings program can be used toward any eligible postsecondary U.S. educational institution, and some international schools. This includes traditional private and public colleges and universities as well as community colleges, graduate programs and vocational schools.

Where is my money held?

Your assets are held with the custodian of the 529 Plan you open (e.g., Fidelity, Charles Schwab, Vanguard, etc.). Gradvisor does not hold your actual assets.

How do you protect my information and my privacy?

Gradvisor is committed to maintaining the privacy and security of your information. We safeguard your sensitive data with bank-level encryption and strict physical security processes, including two-factor encryption within a lock and key secure zone.

We never share, rent or sell your data with any third parties without your explicit consent. To learn more please read our Privacy Policy and Terms of Use.

Do savings in a 529 plan affect financial aid?

529 plan savings are considered in determining financial aid, but receive favorable treatment. Federal need-based student aid programs rely on the FAFSA, which is used to determine a student’s expected family contribution toward college expenses. Assets in a 529 account, whether owned by the student, parent, or someone else, are assessed at a maximum rate of 5.64%. That means the student’s eligibility for financial aid will decrease by no more than 5.64% of the account value. This treatment is considerably more favorable than a student’s other assets, which are assessed at 20%.

In addition, 529 plan distributions receive favorable treatment in the income portion of the financial aid eligibility formula. A tax-free distribution from a 529 plan to pay this year's college expenses will not be part of the "base-year income" that reduces next year's financial aid eligibility.

Schools can also offer their own need-based scholarships that they pay for with their own resources. In these cases, you would have to check with the individual school to determine the effect of 529 assets.

If I have multiple children, should I have multiple 529 plans?

While you could open a single 529 plan and disburse the assets later among your children, Gradvisor encourages you to have multiple 529 plans. The best plan and investment portfolio for Child 1 might not be the best for Child 2.

What happens to the money in my 529 account if my child gets a scholarship?

If the scholarship only covers tuition, you can still withdraw the funds in your 529 account tax-free if they are used toward things like room and board, books, equipment and other purchases required to attend the college.

Another option is to save the funds in the account for future education expenses. Chances are, if the child received an academic scholarship they could go on to graduate school. You could also change the beneficiary on the account to another family member that will attend college

If all else fails, there is an exception to the penalty-tax rule in the case when a child is awarded a scholarship. Withdrawals up to the amount of the scholarship will not incur the 10% penalty, but the earnings portion will be subject to income tax at your ordinary income tax rate.

What if my child decides not to attend college?

529 savings are not limited to a traditional four-year college experience. Funds can be withdrawn tax-free if used toward the costs of any eligible institution, including technical, trade and other specialized schools. You can also change the beneficiary of a 529 Plan to any qualified family member with no tax implications.

What username/password do I use to link my account to the dashboard?

After selecting the proper 529 plan, enter in the username and password you used when opening up your 529 plan, not the login credentials you use for Gradvisor.

Who is my College Savings Advisor?

Each user is assigned a licensed financial advisor to answer any questions they may have. Your advisor is easily reached through your parent dashboard.