8. Scholars Choice College Savings Program

State: Colorado

2020 rating: Negative

2019 rating: Neutral

7. CollegeChoice Advisor 529 Savings Plan

State: Indiana

2020 rating: Negative

2019 rating: Neutral

6. NextGen College Investing Plan Select

State: Maine

2020 rating: Negative

2019 rating: Neutral

5. CollegeAccess 529 Plan

State: South Dakota

2020 rating: Negative

2019 rating: Neutral

4. NJBEST 529 College Savings Plan

State: New Jersey

2020 rating: Negative

2019 rating: Neutral

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3. Tomorrow’s Scholar 529 Plan

State: Wisconsin

2020 rating: Negative

2019 rating: Neutral

2. Franklin Templeton 529 College Savings Plan

State: New Jersey

2020 rating: Negative

2019 rating: Negative

1. USAA College Savings Plan

State: Nevada

2020 rating: Negative

2019 rating: Negative

Morningstar announced updates to its analyst ratings for 61 of the biggest 529 college savings plans in the U.S. earlier this year. These plans represent 97% of the more than $363 billion in 529 plan assets as of Aug. 30.

In 2020, Morningstar manager research analysts awarded three Gold ratings, 10 Silver ratings, 22 Bronze ratings and 18 Neutral ratings to 529 college savings plans.

Eight plans received Negative ratings, six in downgrades.

(Related: Best 529 College Savings Plans of 2020: Morningstar)

Negative-rated plans have at least one major flaw, such as a subpar asset allocation approach or exorbitantly high fees, and are unlikely to provide a typical 529 college savings plan participant with a compelling investment experience relative to alternatives.

Check out the gallery for the eight funds to which Morningstar gave a negative rating.

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