Keeps pace with college inflation
The U.Plan Prepaid Tuition Program is a safe investment and is attracting renewed interest as an important option for college savings. MEFA, creator of the U.Plan, is currently advising families to visit www.mefauplan.org to learn about the program or call a trained U.Plan customer service representative to discuss college savings strategies. The U.Plan annual enrollment period begins May 1st.
«The U.Plan is a safe investment for families seeking a principal-protected approach to saving for college. Families work hard to save and send their children to college, and we’re proud to offer a great way to save for college that offers peace of mind,» said Thomas Graf, Executive Director of MEFA, a non-profit state authority that works to make higher education more accessible and affordable through community education programs, college savings plans, and low-cost financing options. «We’re pleased to see a significant increase in the number of families seeking information about the U.Plan as we approach the annual enrollment season.»
The U.Plan has been featured in national and local news reports, including the Wall Street Journal and the «That Makes Cents» report on WHDH Channel 7 in Boston recently. MEFA will continue to work with families throughout the enrollment period, which begins May 1st.
Since its inception, 36,000 Massachusetts families have saved through the U.Plan.
With the U.Plan, families purchase tuition certificates, backed by Commonwealth of Massachusetts general obligation bonds. The certificates lock in a percentage of tuition at the 80 participating Massachusetts public and private colleges and universities. For example, if a college’s current tuition is $10,000, a $1,000 investment locks in 10 percent of the future tuition, regardless of the eventual cost. Despite a common misperception, families do not choose a college until the child is ready to attend. If a student chooses a college not participating in the U.Plan, the investment is returned with interest, based on the Consumer Price Index, and there is no penalty. Participants may prepay up to 100 percent of a child’s future college tuition and mandatory fees at today’s rates, even though that child may not attend college for another 18 years.
MEFA encourages families to visit www.mefauplan.org to learn more about the upcoming enrollment season.
MEFA is a not-for-profit self-financing state authority, not reliant on state or federal appropriation, that works to make higher education more accessible and affordable for students and families in Massachusetts. Nearly 30 years ago, MEFA was created by the state legislature at the request of Massachusetts colleges and universities. MEFA provides community education programs, college savings plans, and low-cost financing options. In its nearly thirty year history, MEFA has issued $3.5 billion in bonds and has assisted hundreds of thousands of families in financing a college education.
