What is the U.Plan?
The U.Plan is a prepaid college tuition plan that allows you to get a head start on paying for your child's college costs by locking in current rates for tuition and mandatory fees. A prepaid tuition plan is a safe alternative to traditional college savings plans, and has the potential to save you thousands on college tuition.
How the U.Plan Prepaid Tuition Program Works
Future college tuition at today's rates
The U.Plan allows you to save for your child's future college tuition at today's rates, protecting you from rising tuition costs.
Begin contributing money right away
To get started with a prepaid tuition plan, you can enroll and begin contributing money right away. On July 15th each year, your contributions from the last 12 months will be used to purchase Tuition Certificates that cover a percentage of tuition and mandatory fees at participating colleges and universities in Massachusetts. You'll lock in that percentage, which means even if the cost of tuition increases, your Tuition Certificates will still cover the same percentage. Beginning August 1st of each year, you can begin contributing again to your U.Plan account for your Tuition Certificates to be purchased the following July 15th.
Example: Let's say you contribute $1,500 to your U.Plan to cover 10% of a year of mandatory fees and tuition now at a given school ($15,000). If the tuition and mandatory fees increase to $25,000 over the life of your U.Plan, that Tuition Certificate will still cover 10%, or $2,500, of tuition and mandatory fees at that school, meaning you saved $1,000. That's a 67% return on your investment!
Over 70 participating Massachusetts colleges and universities
With the U.Plan, you aren't required to choose a college ahead of time! Over 70 colleges and universities in Massachusetts participate in the U.Plan, meaning you have plenty of options for your child's future education. Want a more in-depth look at the U.Plan? Check out our webinar HERE.
Why U.Plan Prepaid Tuition Program?
Safe prepaid college tuition
The U.Plan is one of the safest prepaid college tuition options to save for college. If your child doesn't attend a participating school, you get your money back with interest!*
Choose your child's college when they are ready
With the U.Plan, you don't have to choose a school until it's time for your child to go to college.
U.Plan contributions can qualify you for a state income tax deduction of up to $1,000 for single filers, and up to $2,000 for married persons filing jointly.
The U.Plan is flexible to meet your goals and budget. You can start out with a contribution of just $300 per year.
Your U.Plan savings count as a parent asset in the financial aid formula, which assumes no more than 5.6% of parent assets can be used for college costs.
*Interest annually compounded according to the Consumer Price Index (CPI).
Who is eligible for the U.Plan Prepaid Tuition?
You can save for a child in a prepaid tuition plan from newborn up through 10th grade, and you don't have to be a Massachusetts resident to participate.
All prepaid tuition plan savers must be citizens or permanent residents of the United States.
There are multiple ways to get started with the U.Plan.
- Within your online U.Plan account, you can set up automatic deposits, request a disbursement, and review your U.Plan statement.
- For existing U.Plan savers, click the "Sign Up" button below and select "Existing Saver? Create online account."
- If you are new to U.Plan, click the "Sign Up" button below and select "First time saver? Enroll now."
Please note that you must use one of the following supported desktop browsers to create an online U.Plan account: Google Chrome – two latest versions; IE 11; Microsoft Edge; Safari for Mac – two latest versions (Safari for Windows is not supported).
Download the enrollment kit here.
After you start saving in the U.Plan, you will receive quarterly statements that will detail your contributions to your prepaid tuition plan.