The new school year is here – and that means your child is a step closer to graduation. Whether he or she is 5 or 15, your child is inching toward that finish line. But are you ready for the next step?
While you might never feel prepared for that moment, there are some ways to get ready – and the No. 1 way is with a college savings plan from the Michigan Education Trust.
It’s never too soon to start saving for your child’s college education. In fact, a college savings plan with Michigan Education Trust is one item that should be on every family’s back-to-school list.
College savings plans defined
The Michigan Education Trust, or MET, is a state-sponsored 529 prepaid tuition plan for undergraduate tuition for Michigan children. The “529” simply refers to an Internal Revenue Service code that means it’s exempt from state and federal taxes.
A plan with MET allows families to lock in today’s tuition rates for tomorrow’s education. The plan is portable, transferable and flexible – taking into consideration the fact that plans change for families and students.
Refunds are available for students who receive a full scholarship and for those who enlist in the military or opt out of attending college altogether. For students who don’t attend college, the funds can be transferred to an immediate family member, as well. Students who decide to attend a Michigan private college or an out-of-state college may direct a refund to that college.
In addition, students who need more time before attending college actually have 15 academic years from their high school graduation year to use the tuition benefits.
Want to open a college savings plan with MET, but not sure how to go about it? It’s easy. Read on for details.
With so many back-to-school expenses – from books and supplies to sports and clothing – you might find yourself wondering if you can afford to open a college savings plan for your child.
The good news is that you can. MET helps to ease the financial strain through three payment options:
1. Pay-As-You-Go plan: Buy at least one credit hour for any age. After that, add $25 minimum at any time.
2. Lump sum plan: Buy one or more full semesters (15 credits/semester) for any age.
3. Monthly plans: Commit to buy at least one semester of college over four, seven, 10 or 15 years.
Opening an account is simple and can be done solely online.
If you have other accounts, simply roll money from other 529 programs (including the Michigan Education Savings Program), Coverdell Education Savings Account funds and qualified U.S. savings bonds into your child’s account.
For more information on the Michigan Education Trust, or to open an account for your child, visit SETwithMET.com.