College Savings

Why Save in the U.Plan?

Reasons include tax savings, locked-in college costs, safety and reliability, choice, flexibility, and no fees
Why Save in the U.Plan?

As the Director of College Savings Programs here at MEFA, I'm often asked why someone should save in the U.Plan Prepaid Tuition Program. What makes the program beneficial to families? Does it really provide outstanding benefits and reduced rates on college costs? The short answer is yes. The U.Plan does deliver on its promise to help your family pay for college in a powerful way. How does it do that, exactly? Read below to learn the facts.

  • Tax Savings. Massachusetts residents saving in the U.Plan can claim a state income tax deduction of up to $1,000 for single filers and up to $2,000 for married persons filing jointly. Also, U.Plan savers won't pay federal or MA state taxes on any earnings.
  • Locked-in college costs. When you save in the U.Plan, you lock in a percentage (up to 100%) of today's tuition & mandatory fee prices. As an example, let's say you put $5,000 into the U.Plan this year, and that covers 50% of a certain college's tuition and mandatory fees. When your child goes to college, your savings will cover 50% of that college's current tuition and mandatory fees, no matter how much those prices have increased. So if tuition and mandatory fees have raised to $18,000, you'll have 50%, or $9,000, of that cost already covered.
  • Safe and reliable. Your U.Plan savings are backed by the full faith and credit of the Commonwealth of Massachusetts. And your money isn't affected by changes in the market. What does that mean? This is a no-risk investment. Your money will always be there for you.
  • Choice. There are over 70 public and private colleges and universities in Massachusetts that participate in the U.Plan, and your child doesn't have to select a school until it's actually time to attend.
  • Flexibility. What if your child doesn't attend a U.Plan school? No problem. You'll receive your U.Plan savings back, with no penalty and with interest added on (calculated at CPI), when your child heads off to college.
  • Fee-free. There's no application or enrollment fee associated with the U.Plan. All of your money goes directly into your U.Plan account.

Ready to save? Simply open an account online. If you have questions about how the U.Plan works, we have representatives ready to provide information and guidance. Reach out to us at (800) 449-MEFA (6332) or


Open a U.Plan account