MEFA's U.Plan Helps Families Lower College Costs
BOSTON [May 4, 2016] - The annual enrollment period for the U.Plan Prepaid College Tuition Program runs from May 1st to June 30th. This is the time for families to save for college in one of the nation's most dependable prepaid college tuition programs, which offers tax advantages and locks in today's tuition rates.
"This distinct college savings program allows families to plan and save for the future. We can confidently say the U.Plan is a reliable college savings program that guarantees to keep pace with future tuition and mandatory fee costs. U.Plan families often describe the peace of mind that comes from saving in the U.Plan, and how much they appreciate the return on their investment," said Martha Savery, Director of Public Affairs at MEFA, the Massachusetts Educational Financing Authority.
Important features and benefits of the U.Plan include:
- Tax benefits: Earnings are exempt from state and federal income tax.
- Plan flexibility: Families save today and when the time comes can use their savings at any of the schools within the large U.Plan network of Massachusetts colleges and universities or use their savings at any college or university in the country.
- No fees: There are no program, application, or enrollment fees, so every dollar saved by a family goes toward paying for college.
How it works
During the annual U.Plan enrollment period, families save for college by depositing a lump sum amount of money of $300 or greater into the U.Plan. This deposit purchases Tuition Certificates backed by Commonwealth of Massachusetts general obligation bonds, which can then be redeemed in the future to pay for any one of the participating Massachusetts public and private colleges and universities.
For example, one U.Plan family opened an account with $5,000 upon the birth of their son, which at the time equaled 100% of a year's tuition and fees at a state university. When their son enrolled at the state university 18 years later, he owed no additional money for tuition and fees, even though tuition and fees had grown to $13,000 per year.
When establishing a U.Plan college savings account, there is no requirement to pick a college or university from among the network of participating public and private institutions in Massachusetts. If the child attends a college outside of the U.Plan network, the savings is returned to the account owner along with interest compounded annually. And families can purchase U.Plan Tuition Certificates every year during U.Plan season.
For more information on the U.Plan, call (800) 449-MEFA (6332) to speak with a MEFA college planning representative or visit mefa.org/uplan
The Massachusetts Educational Financing Authority (MEFA) was created in 1982 by the state legislature at the request of Massachusetts colleges and universities to make higher education more accessible and affordable for students and families. The extensive community education programs and on–line resources offered by MEFA provide families guidance on planning, saving and paying for college. Throughout its over 30 year history, MEFA has assisted hundreds of thousands of families in financing the dream of a college education. MEFA is a not-for-profit self-financing state authority, not reliant on state or federal appropriation. Visit www.mefa.org to learn more or follow MEFA on Twitter @mefatweets and on Facebook.com/mefaMA.
Public Relations Manager