Parents and grandparents saving for college through one of Indiana’s 529 plans may find some good news amid all the dismal economic reports.

The state’s CollegeChoice 529 Direct Savings Plan has been named among the nation’s top college savings plans, according to investment analysts at Morningstar Inc.

The news comes at a time when 529 plans, named after their Internal Revenue Service code, have shed 30 and 40 percent of their values during the economic downturn, and some states — including neighboring Illinois — have launched investigations into their 529 plans and fund managers.

Indiana’s plan “keeps it simple, but gets kudos in a number of areas,” the Morningstar report says.

Among its attractions are very reasonable fees for the direct-sold product, along with a tax credit for Indiana residents of 20 percent, up to $1,000, on all contributions.

But after the market debacle of 2008, Morningstar’s criteria emphasized responsible asset-allocation schemes, given the ages of students — and especially those at or approaching college entrance.

Losing money in a 529 makes it just as difficult for students close to starting classes and counting on those dollars, as it is for those just a few years away from retirement who don’t have the time to recoup their losses.

And those losses are coinciding with the rising cost of a college education. With the increased difficulty securing student loans and other financial aid because of frozen credit markets and anemic endowments, for some students, that may mean they have to defer their dreams as a result.

That’s why Indiana’s plan, upgraded last fall after a Upromise takeover from J.P. Morgan, fared well because of “sensibly constructed” age-based options, Morningstar determined.

Those features may minimize the risk of students about to enter school by shifting investments away from stocks and into more conservative products. The Indiana plan’s options stand in contrast to plans in New Jersey, Utah and Oregon, for example.

There, students on the verge of entering school still have had 35 and 40 percent of their money for college invested in higher-risk equities subject to this current market’s volatility.

In Illinois, Morningstar notes, losses for college-bound students were “so unprecedented” that the state pulled three 529 products and in January, the state treasurer said he was preparing to file a lawsuit against OppenheimerFunds, the plan managers.

In contrast, Indiana’s options for asset allocation moved it way up the list.

Other 529 plans in the nation’s Top Five, analysts said, include Ohio’s CollegeAdvantage, Utah Educational Savings Plan Trust, and two Virginia savings plans.

Indiana’s low fees couple with low minimums and high maximum for contributions, according to the state. Accounts can be opened and then maintained for as little as $25, but with contribution limits approaching $300,000 in state plans.

In addition to the in-state tax credit, there’s also no annual account maintenance fee for residents.

To learn more about Indiana’s 529 plans, check the Web here.