Private College 529 Plan is a prepaid tuition plan that allows families to save on the cost of college by purchasing tomorrow's tuition at today's prices.
You save on the cost of college by buying tuition at today's rates that can be used at any of the nearly 300 participating colleges and universities for up to 30 years. No matter how much tuition increases over the years, or how volatile financial markets are, the participating institutions guarantee your prepaid tuition. Account owners pay no fees. Every dollar you contribute goes toward the purchase of tuition.
Private College 529 Plan offers the same federal tax benefits as any 529 prepaid tuition plan or state-sponsored 529 college savings plan. The value of your Private College 529 account grows as tuition increases. The increased value of your account is tax deferred and if the assets are used to pay qualified higher education expenses, the increase in value is tax free.
You are purchasing Tuition Certificates that can be redeemed to pay for future tuition at any of our participating private colleges. The amount of tuition you purchase is based on the current rate of tuition at each participating school. The percentage of a year you purchase will vary by school, based on the tuition rates at the time your Certificates are purchased.
EXAMPLE: A Tuition Certificate purchased for $10,000 today may be worth 0.33 years of tuition at one school where current tuition is $30,000 and 0.25 years at another school where current tuition is $40,000. Each time you contribute to your account the Plan calculates how much tuition you own at each participating school. We report how much tuition you own at your designated sample schools on your account statements. You can check how much tuition you own at any of our participating schools online at any time.
All contributions you make to an account during a Program Year (July 1 through June 30) are aggregated into a single Tuition Certificate. If you make contributions to your account over multiple years, you will own multiple certificates, one for each year in which you contributed to your account. Your Tuition Certificates represent the amount of tuition you own at any of the participating institutions.
Certificates must be held for 36 months from the "purchase date" before they can be redeemed to pay for tuition at participating institutions. The purchase date of a Certificate is the date of the first contribution in a Program Year.
No. Tuition Certificates may be used at any participating school where your beneficiary is accepted and enrolls. When you open an account, you can designate up to five sample schools to track how much tuition you've purchased. You may check how much tuition you own at any participating school by logging into your account online, any time.
No. Account owners pay no fees. The participating colleges and universities cover all of the operating costs and investment fees. Every dollar you contribute to your account goes toward the purchase of tuition.
Certificates can be used to pay for undergraduate tuition and mandatory fees. In general, mandatory fees are those fees students are required to pay as a condition of enrollment.
Our participating colleges and universities guarantee your prepaid tuition. Each participating institution is contractually obligated to honor Tuition Certificates for up to 30 years from the date of purchase. Participating schools bear all of the financial risk and pay all of the fees.
Schools that sign up to participate will honor all outstanding Tuition Certificates that were purchased before the school signed on. Participating schools guarantee Tuition Certificates for 30 years from the time of purchase, regardless of whether the school was a participating college at the time the Tuition Certificate was purchased.
If your beneficiary receives a partial scholarship you can still use your Certificates to cover the remaining tuition costs.
Minimal. If the parent is the account owner, Private College 529 Plan accounts are treated as assets of the parent, which has a smaller impact on federal financial aid than if the assets were those of the child. The federal financial aid formula considers no more than 5.6 percent of parents' assets and 20 percent of a child's assets available to pay for college.
Individual institutions may consider parents' assets in a different way when deciding how to distribute financial aid. Be sure to consult the college or university financial aid office and your tax advisor about your particular situation.
Additional colleges are joining Private College 529 Plan all the time. However, if your child goes to a college or university that does not participate, or doesn't go to college at all, you have options:
Absolutely not. Friends, godparents, grandparents - anyone - can open an account or make a gift to an existing account. Gifting to a Private College 529 Plan account is a great way to make private school tuition affordable for a child.
Most families - whether they are Private College 529 Plan account owners or saving with another 529 plan-don't save the entire cost of tuition and mandatory fees by the time their child heads off to college. Families supplement savings/prepaid tuition with grants/scholarships, current income and loans to cover the cost of attendance. Use the "net price calculator" on college and university web sites to help you estimate how much you might be expected to pay. Remember, even if you have only saved part of the cost, every dollar you prepay or save, is a dollar your student doesn't have to borrow.
If the value of your Tuition Certificate(s) is more than the full amount of tuition and mandatory fees, you will have options:
When you open your Private College 529 Plan account, you'll be asked to designate up to five sample participating colleges and universities to monitor. Each quarter you will receive a statement that reports how much tuition you have purchased at each of your sample schools. These are only examples and do not obligate your student to apply to any these schools. You can change your sample schools online any time, enabling you to see the value of your Tuition Certificates at any participating school.
Private College 529 is the only prepaid tuition plan specifically tailored to help make private college affordable. Compare the plan to other college savings options.
If you take a refund rather than redeem your tuition certificates for their intended purpose, the refund will be adjusted based on the net performance of the Program Trust, subject to a maximum increase of 2% per year, and a maximum loss of 2% per year. If your refund amount is not used to pay for qualified higher education expenses, the earnings portion of that amount will be subject to U.S. federal income tax and a 10% additional tax. See Disclosure Statement for details. The refund amount will be paid from the Program Trust only.