MEFA's U.Plan Prepaid Tuition Program helps you stay ahead of rising college costs by letting you “prepay” tuition and fees at 80 participating Massachusetts colleges and universities. You can prepay up to 100% of a child’s future college tuition at today’s rates, even though that child may not attend college for another 18 years.
U.Plan Tuition Certificates are backed by bonds, issued by the Commonwealth of Massachusetts. Unlike stock or mutal fund investments, you know what the Tuition Certificate will be worth at maturity.
You don’t have to choose a college ahead of time, and if you don’t use your Tuition Certificates at a participating Massachusetts college or university, your initial investment will be returned to you at maturity with interest compounded annually at the Consumer Price Index (CPI).
No application or enrollment fees.
Every dollar you contribute goes directly toward helping you reach your college savings goal.
No Massachusetts state tax
U.Plan Prepaid Tuition Program earnings are exempt from state and federal tax, with some limitations.
When you contribute money to the U.Plan during the annual enrollment period, you purchase Tuition Certificates, which represent a certain amount of today’s tuition at each of the participating colleges and universities.
This chart shows how much a $1,000 U.Plan Tuition Certificate would be worth at three different types of colleges:
Suppose that your child decides to attend a public college, and by that time, tuition and fees have gone up to $15,000 per year. Your U.Plan Tuition Certificate will still be worth 10% of tuition and fees: 10% of $15,000 is $1,500.
When it’s time to use your U.Plan college savings, just let us know which of the participating colleges and universities your child plans to attend, and we’ll send your U.Plan proceeds directly to the school. If your child doesn’t go to one of the participating colleges or universities, you’ll receive your initial investment plus interest.
You can contribute to the U.Plan during the annual enrollment period, usually from May 1st to June 30th. Sign up to receive a U.Plan enrollment kit at the start of the annual enrollment period. You’ll also receive emails about college savings throughout the year.