among 200 colleges offering new tuition program
Families could save
thousands with new Independent 529
A new savings plan
being offered by RIT will allow families to lock in tomorrow’s
tuition at less than today’s price. RIT is participating
in an Independent 529 Plan, a new prepaid college tuition plan
tailored for private colleges.
“We see this
plan as part of our ongoing efforts to make higher education
accessible to more families,” said Verna
Hazen, RIT’s financial aid director. “For purchasers,
the effectiveness of the Independent 529 Plan is not dependent
on the performance of the stock or bond markets. Rather, contributors
are actually pre-purchasing tuition, in part or in whole, at
less than today’s prices.”
Families have been
attracted to 529 plans because of the tax-free savings. Benefits
are also transferable to other family members and refunds are
available if a child receives a scholarship or decides not
to attend college. But unlike the popular state-sponsored 529
plans, the Independent 529 plan has no investment risk or management
of whether a student attends RIT or another one of the other
200 private institutions in our consortium, the Independent
529 plan represents a way for parents to contribute and pay
for private college without worrying about either investment
risk or tuition inflation,” said
Here is how the plan
The plan enables a parent to purchase a certificate for
part or all of tuition that can be used at any participating
private college. They pay today’s prices, less a discount
that reduces the cost even further. At a minimum, institutions
must offer a half percent per year off current tuition rates.
it is time to enter college, parents redeem the certificate for
the guaranteed amount of tuition no matter how much colleges
are charging at the time the new freshman enrolls. The certificate
may vary in how much tuition it pays. Parents can get started
with contributions as low as $25 per month.
For more information
on RIT’s Independent 529 Plan, contact
Verna Hazen, financial aid director, at 585-475-5520
or firstname.lastname@example.org. Information is also available online at
Independent 529 Plan key features:
- Consumers pay
at today’s tuition rate, an opportunity
to beat inflation.
- No fees of
- A parent, relative
or friend at any income level can establish an Independent
529 Plan for a beneficiary (eventual student) and may also
transfer use of the tuition certificates to a wide range of
relatives of the beneficiary.
- Accounts can
be opened for as little as $25 provided contributions total
at least $500 within two years. The maximum lifetime contribution
limit is equal to five years worth of tuition at the most expensive
participating private college in the plan.
- The number
of participating private colleges and universities, now at
more than 200, may increase over time.
are made on an after-tax basis and any increase in value realized
when a tuition certificate is redeemed will be free of federal
and state taxes.