College Savings

Getting Mature about 'Maturity Years'

This is such an exciting time of the year, with so much activity around graduations for high school and college students. Even if this time of year does not pertain to you today, it is hard not to get caught up in the revelry: commencement speeches, college reunions, tents, balloons and parties! It's a time to celebrate and reflect while also anticipating the future.

During this time of year, MEFA is in full swing with the U.Plan enrollment season. As I drive around town with my children in tow, I am reminded that sooner than I think, we will be celebrating their own progressions. It is the time of year when I focus on saving for my children in the U.Plan program. In the U.Plan, families like mine purchase tuition "certificates," which are really general obligation bonds of the Commonwealth of Massachusetts, that lock in tuition and mandatory fees today to pay for tuition in the future.

The U.Plan is such a wonderful program, but it often needs some explaining. When I talk to families about it, they often ask me, how do you figure out when the student will use the tuition certificates? Answering that question is what we call selecting a "maturity year."
The tuition certificates are linked to the years in which your child will be in college, the "maturity years." In my case, my oldest is going to be a college freshman in 2022, so I have purchased certificates for that year, and have also purchased certificates for the subsequent years he will be enrolled as well. It is ideal if you can afford to save for each of the 4 years of college per child. But you can also focus on one year at a time.The most important action is to save! Review the chart below to determine the maturity years for each of your children's U.Plans.

Maturity Year Chart
As graduation parties take place in your neighborhoods and you pass the card aisle full of 'Congratulations Graduate' cards, think about your plans for your children's college education. Setting up the U.Plan and picking your maturity years is an excellent way to make a plan for the future and get ahead of college costs. If you need help in figuring this out, call us. We are only a phone call away at 1.800.449.6332