The U.Plan let's a family roll back the close and send their child to college in the future for the cost of this year's tuition.
(PRWEB) June 29, 2013
Boston, MA: Imagine attending a Massachusetts college today, but paying the tuition charged in 1995. That’s exactly what a family would be doing this fall if they started saving for college in the first year of the U.Plan Prepaid Tuition Program, offered by MEFA, the Massachusetts Educational Financing Authority.
For 18 years, the U.Plan (http://www.mefa.org/uplan) has provided families the chance to lock in future tuition at today’s prices, giving students the opportunity to attend one of the 80 participating public and private colleges and universities at a fraction of the cost.
“The U.Plan let’s a family roll back the clock and send their child to college in the future for the cost of this year’s tuition. Saving money today in the U.Plan locks in a percentage of tuition at all 80 participating colleges providing a unique and tax-free option to save money for college,” said Thomas Graf, Executive Director of MEFA, which works on behalf of families to help them plan, save and pay for college.
Families have a limited time each year to take advantage of the savings opportunity. The annual two-month enrollment period for the U.Plan has been extended to July 12th. During the annual U.Plan enrollment period, families deposit money, which is used to purchase tuition certificates backed by Commonwealth of Massachusetts general obligation bonds. Families may invest up to 100% of a child’s future college tuition at today’s rates.
For example, if a college’s tuition today is $10,000, a $1,000 investment locks in 10% of the future tuition, regardless of the eventual cost. If in the future the tuition at the college increases to $15,000, the 10 percent investment is equal to $1,500. This unique feature of the U.Plan is tax free and principal protected.
Deciding on a college is not required until the child is ready to attend. If a child chooses a college or university not participating in the U.Plan, the investment is returned with interest and no penalty just when a family needs it the most and the savings can be used to pay for college expenses elsewhere. Any interest or other benefits from the U.Plan are exempt from federal and Massachusetts income tax.
For more information or to enroll and save in the U.Plan, call 1.800.449.MEFA to speak to a U.Plan customer service representative or visit http://www.mefa.org/uplan.
MEFA is a not-for-profit self-financing state authority, not reliant on state or federal appropriation that has been working for over 30 years to make higher education more accessible and affordable for students and families in Massachusetts. MEFA was created by the state legislature at the request of Massachusetts colleges and universities and provides community education programs, college savings plans, and low-cost financing options. In its over 30 year history, MEFA has assisted hundreds of thousands of families in financing a college education.