Word of the Day Wednesday: Maturity Year
Each Wednesday, MEFA features a Word of the Day, where we highlight a word (or sometimes a phrase) related to the college planning process. This month, we're focusing on vocabulary related to the U.Plan Prepaid Tuition Program.
Today's Word of the Day is Maturity Year.
The maturity year is the future year you anticipate needing U.Plan savings to help you pay for college. It's based on the years you expect your child (or whoever the beneficiary may be) to attend college, and you can save for any or all of the appropriate maturity years (e.g. freshman, sophomore, junior, and/or senior year).
When you enroll in the U.Plan, you will need to complete a Purchase Request Form. On this form, you will indicate the amount you want to contribute for the enrollment period and the maturity year(s) in which you want to save. You will be able to redeem your savings for tuition and mandatory fees in the maturity year(s) you select. Each time that you save in the U.Plan, you can select multiple maturity years as long as you are able to designate at least $300 per maturity year. MEFA recommends planning ahead as best as you can, and if possible, designating savings for all four years of college.
Why does this matter to you?
It is important that you select the correct maturity year(s). Once you have submitted your Purchase Request Form, your savings will be locked into the maturity year(s) you selected and they will become available to help you pay for college in that year.
For more information on the U.Plan, visited our dedicated webpage here.
Angelina Mancini joined MEFA in 2006 as a member of the Customer Service team and now serves as Manager of Early College Planning. She currently works on the administration of the U.Plan and the U.Fund, assisting families with account service and giving college saving presentations across the Commonwealth.