Independent 529 Plan is first national program
11/5/2003 10:08:42 AM
Lynchburg, Va.—R-MWC has joined other colleges and universities in offering a prepaid tuition plan, effective this fall. The new plan is the first national prepaid tuition program that allows families to save for private higher education.
The Independent 529 Plan, approved by the Internal Revenue Service, allows families to buy tuition certificates that can be redeemed at any of the program's participating colleges. It is designed to protect families against future tuition increases and also allows certificates to be bought at prices below the current cost of tuition, in effect creating a "certificate discount" at each member college. Each college sets its own certificate discount rate. The plan also exempts from income tax any increases in the value of the certificates, provided they are used to pay tuition or other allowed expenses.
Participating colleges expect to benefit by creating a larger pool of families who are saving for college.
R-MWC is one of more than 265 private colleges and universities who belong to the nonprofit Tuition Plan Consortium that is offering the 529 plan. Other members include Smith College, Mount Holyoke College, Hollins University, Sweet Briar College, Wellesley College, and Washington and Lee University.
Prospective buyers of certificates can calculate their potential tuition benefits by date of purchase and by college at the plan's Web site at www.Independent529plan.org.
The program is being administered by TIAA-CREF Tuition Financing, Inc.
CONTACT: Brenda Edson, Director of Communications