Families who start a college savings account have more
options when determining how to pay for their children’s education. The more
money you save and the earlier you start a college fund, the
When you save for college
instead of using loans to cover education costs, you earn
interest instead of paying interest. For example, to accumulate $10,000
in 10 years at 7% interest, you’d need to save $58 per month. To borrow $10,000
over 10 years at 7% interest, you’d have to repay $116 per month.
Real Cost of Borrowing*?
college savings fund ahead of time instead of borrowing and repaying the loan
will save you $6,960.*
* This example is an estimate only. Market
conditions may change.
MEFA and the Commonwealth
of Massachusetts have two innovative college
savings accounts to help you save. You can save with both the
U.PlanSM and the U.Fund®. Here are some key
| ||A prepaid tuition program that locks-in tuition
rates at participating Massachusetts colleges and universitites.|
Use proceeds for undergraduate
tuition and mandatory fees.
public and private colleges and universities in Massachusetts
investment back, plus interest, if you don’t go to one of the 80 participating
| ||A market-based 529
investment plan that lets families invest in portfolios of mutual
fees and other qualified expenses including room, board, books and
Use at any
accredited college or university nationwide, for undergraduate or graduate
Set a clear goal that you
can attain within your particular timeframe.
Add saving for
college to your regular budget, and set up automatic transfers to your college
Know your options. There are lots of ways to save for
college, and many people use more than one. Download our savings comparison chart to learn about
Ask relatives to contribute
money to your child’s college savings account at holidays and
If you receive a bonus, tax refund or other unscheduled
income, set a portion of it aside for college.