Owned and operated by nearly 300 private colleges and universities across the country, the Private College 529 Plan allows families to prepurchase college tuition at today’s prices.
The plan protects families from tuition increases (roughly 3–5 percent a year), guaranteed and tax-free.
- When the account is opened, the account owner names the beneficiary.
- Account owners do not have to select a school until the beneficiary is accepted and enrolls. However, during the investment period, account owners may select up to five “sample schools” to find out how much the plan would be worth at each one.
- When the beneficiary enrolls at a participating college, the 529 certificate is redeemed and the school receives the market value of the investment.
- The value of the prepaid tuition is guaranteed by participating schools, regardless of what happens in the financial markets. What you pay today will be honored tomorrow.
- If the student attends a school outside the Private College 529 Plan network, the account owner can name another beneficiary, roll the assets into another 529 plan, or request a refund.
- Private College 529 assets may be used to pay only for undergraduate tuition and mandatory fees.
Most 529 savings plans are sponsored by individual states and are not guaranteed to keep pace with tuition increases. The Private College 529 Plan is not sponsored by a state. Run by its participating schools, it is designed to help keep tuition affordable.
For more information, please visit Private College 529 Plan.