Want to know the best-kept college savings secret in Massachusetts? It’s the U.Plan Prepaid Tuition Program. The U.Plan allows you to set aside funds for future college costs. That’s similar to many other college savings programs. But it also locks in today’s tuition & fee rates at over 75 colleges and universities (both public and private) throughout Massachusetts. That means you’ll be paying yesterday’s tuition and fee rates when your child goes to college. Sounds like a great deal, right? Here’s what else you need to know:
- U.Plan enrollment opens each year in May, and the minimum deposit is $300, though we encourage you to save as much as you can in the program each year. Start setting aside funds NOW so that you’re ready when it comes time to save in the U.Plan in May.
- Your child doesn’t have to select a school until it’s time to attend, so you can start saving in the U.Plan now and figure out school choice later.
- The U.Plan is risk-free. If your child decides not to attend a participating U.Plan school, you’ll receive your savings back, with interest and no penalty. That’s win-win.
- The U.Plan is backed by the full faith and credit of the Commonwealth of Massachusetts. So it’s a safe, reliable college savings plan.
- You won’t pay any fees in the U.Plan, or any MA state or federal taxes on your earnings.
- The U.Plan counts as a parent asset when a college financial aid office reviews a family’s finances to determine financial aid eligibility, which is good news. The financial aid formula assumes that no more than 5.6% of total parent assets should be used for college costs. So you can save a large amount in the U.Plan and not significantly affect your eligibility for financial aid.
Want a little more explanation? Watch our quick video tutorial. And if you’d like to speak to someone about the U.Plan, gives us a call at (800) 449-MEFA (6332). We want you informed and ready with a plan to save for college when the U.Plan opens in May.