Tuition prepayment plan enables parents to lock in tuition rates now for future use

Future students at Dana College in Blair, Neb., are now able to lock in today’s tuition rates.

Independent 529 Plan, which has 269 member colleges and universities, was launched in 2003 in a cooperative effort by a national group of private colleges and universities to help families manage the rising cost of higher education. Under the program, individuals can purchase tuition certificates for future redemption at any of the participating private colleges and universities, now including Dana College.

“ A college education is an investment in the future. The Independent 529 Plan offers a way for parents to save now for the future investment in their child’s college education. Dana College is pleased to join with other colleges in this effort,” said Dr. Janet Philipp, president of Dana College.

“ This plan is an innovative way for parents to provide for their children’s future education at less than today’s cost,” added Nancy Farmer, president and chief executive officer of Independent 529 Plan.

“ In return for parents prepaying college costs, member colleges accept the investment risk and protect parents from future tuition increases,” Farmer said. “Tuition purchased today is guaranteed to satisfy costs at the time the child enrolls. So, a parent who purchases a half year of tuition today will receive a half year of tuition when the child later redeems the tuition certificate at a member college. This is true regardless of how much tuition rises or what happens in the investment markets,” she said.

“In fact, families will pay slightly less than current tuition because each of our participating schools discounts the tuition certificates by at least one-half of one percent per year.”

Dana College brings to four the number of Nebraska colleges and universities that are members of Independent 529 Plan. The others are Concordia University, Creighton University and Doane College.

Nationally, a few of the 269 institutions participating in Independent 529 Plan include Stanford University, Princeton University, Massachusetts Institute of Technology, Johns Hopkins University, the University of Notre Dame, Washington University in St. Louis, Carnegie-Mellon University, Wake Forest University and the University of Chicago.

Independent 529 Plan is run by the nonprofit Tuition Plan Consortium and administered by TIAA-CREF Tuition Financing Inc. Funds saved can be used at any of the participating colleges and universities nationwide. Benefits are free of federal income tax, and the plan charges no enrollment or maintenance fees. For more information about Independent 529, call (toll free) 888-718-7878 or visit www.independent529plan.org.

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