SALT LAKE CITY (AP) — Officials with the Utah Educational Savings Plan say they've reached a milestone and are now managing $6 billion in assets.

Plan director Lynne Ward said the landmark is a sign that families are realizing the importance of saving for college and avoiding major debts when students graduate.

Officials with the program said this month they're now managing more than 226,000 accounts. They attribute the recent growth to the savings plan's efforts to be a low-cost leader in the 529 plan industry.

The program has been named one of the nation's top plans by organizations including Money magazine and CBS MoneyWatch.com.

In June, Utah's 529 plans were given a gold star rating from Morningstar, along just three other states.

Related:

Utah's 529 savings plan draws out-of-state parents to invest

Many Utahns are investing in 529 accounts, an investment account that encourages saving and spending on higher education. In fact, Utah is among just three other states that received a gold rating from Morningstar for its 529 plans, according to UESP.

"All of your contributions and earnings come out tax-free to you when to when used to pay tuition fees, room and board, books, supplies and equipment," Michael Conrath with J.P. Morgan Asset Management, said when the ratings were released. "That is the core benefit of a 529 plan, and that's probably the key reason why over 10 million families have invested $180 billion today in them."

Funds invested in the plan grow tax-deferred and will be free of federal and Utah state income tax when they're used for qualified higher education expenses.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Contributing: Cait Orton

Related topics