U.Plan Prepaid Tution Program Deadline Extended
BOSTON [July 1, 2015] - MEFA has extended the annual enrollment period for the U.Plan Prepaid Tuition Program, giving families more time to lock in tomorrow's tuition at today's prices. The deadline for opening a U.Plan account and making the annual savings deposit is now July 17th, 2015.
In its 20th year, the U.Plan has helped thousands of families save for college in a unique way, paying in advance for college at today's prices. Savings deposited this year locks in an equivalent amount of tuition at one of 80 participating colleges and universities in Massachusetts. The percentage paid for today remains the same, regardless of the future cost of college.
The U.Plan' s annual enrollment period, a two-month window to establish an account or deposit savings into an existing account, is now open until July 17th , 2015
"The U.Plan is a great way to save for college and protect against any increases in the future cost of attendance, " said Martha Savery, Director of Public Affairs for MEFA, which offers the U.Plan. "Parents with U.Plan accounts really like the fact they provide peace of mind that they are saving for college in a way that helps deal with rising costs."
During the annual U.Plan enrollment period, families deposit money saved for college that is used to purchase tuition certificates backed by Commonwealth of Massachusetts general obligation bonds. Upon maturity, the tuition certificates can then be redeemed to attend any one of 80 participating Massachusetts public and private colleges and universities.
For example, Billerica mother Paulette Ann Silva-Glasser saved $5,000 in the U.Plan when her son was born, an amount that equaled 100% of tuition and fees at a state university at the time. When her son enrolled 18 years later at UMass Lowell, a participating school, 100% of tuition and fees equaled $13,000, but Silva-Glasser owed no additional money to cover tuition and mandatory fees.
Important features of the U.Plan include:
- When establishing a U.Plan college savings account, there is no requirement to pick a college or university from among the network of 80 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.
- U.Plan earnings are exempt from state and federal tax.
- The U.Plan has no program, application, or enrollment fees, so every dollar saved by a family goes toward paying for college.
- Saving in the U.Plan is permitted only during the annual enrollment period (May 1, 2015 - June 30, 2015) and the minimum investment is $300 per maturity year.
For more information on the U.Plan, call (800) 449-MEFA to speak with a U.Plan specialist or visit mefa.org/uplan
The Massachusetts Educational Financing Authority (MEFA) is a self-financing quasi-public authority, not reliant upon state or federal appropriation, working to make higher education more accessible and affordable for students and families across the Commonwealth. MEFA's mission to increase college access and 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. Follow MEFA on Twitter through @mefatweets and on Facebook.com/mefaMA.
Public Relations Manager