Annual U.Plan Enrollment Extended to July 18
BOSTON [July 1, 2014] - The annual enrollment period in the U.Plan Prepaid Tuition Program has been extended to give families more time to prepay future college tuition at today's prices. The enrollment period – when families can deposit savings in the U.Plan and lock in tuition prices – has been extended to July 18.
New and returning U.Plan account holders can contact MEFA at (800) 449-MEFA (6332) or online at mefa.org/products/u-plan to make a deposit. During the enrollment period, deposits into the U.Plan are used to purchase tuition certificates backed by Commonwealth of Massachusetts general obligation bonds.
The tuition certificates can later be redeemed at any of the 80 participating Massachusetts colleges and universities. Families may invest up to 100 percent of a child's future college tuition at today's rates.
For example, if a college's tuition and fees today are $10,000, a $1,000 investment today will pay for 10 percent of the future cost, regardless of the actual, eventual amount. If the tuition has increased to $15,000 when the student is ready to attend the college, the initial 10 percent investment will cover $1,500 of the bill. This unique feature means the U.Plan is a principal-protected college savings option.
The decision of which college to attend is not made 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, and the savings can be used to pay for college expenses elsewhere. Any interest or other benefits earned from the U.Plan are exempt from Massachusetts income tax.
The Massachusetts Educational Financing Authority (MEFA) works to make higher education more accessible and affordable for students and families across the Commonwealth. MEFA's mission to increase access and college affordability is achieved through community education programs, financing expertise on planning, saving, and paying for higher education, and college savings and education loan programs. In its over thirty-year history, MEFA has assisted hundreds of thousands of families finance a college education. A self-financing quasi-public authority, MEFA is not reliant upon state or federal appropriation. Visit mefa.org to learn more or follow MEFA on Twitter @mefatweets and on Facebook at mefaMA.
Public Relations Manager