The average cost for a year of in-state college is $9,650 per year (source). If your child decides to attend college out-of-state, that cost jumps to more than $24,000 per year. And, private college? Expect to pay more than $33,000 per year! In fact, if your child were to attend Harvard, the annual cost of tuition alone is a staggering $43,280 per year!! (And many are higher!)
Being a mom to three kids, college costs are a concern for both my husband and me. We started saving when our children were babies and are well on our way to helping cover most of their college costs. The key is to get started right now!
We recently ran projections for the cost of college for all three kids and found out that we are still a bit behind our savings goals. And, what worries us more is the cost if our kids decide to attend a private college. Sure, it may be around $33,000 – $43,000 right now, but do you know what will happen to those costs over the next 8 – 10 years? Yep — up, up, up!
I was doing some research and found some staggering statistics. The cost of college tuition has risen 280% since 1981! That is crazy!!! If only there were a coupon for college!
Well, it may not be a coupon, but there is a way to save on college tuition costs, all while building savings for your child’s education. I’ve teamed up with Private College 529 Plan to share the details about this program.
WHAT IS PRIVATE COLLEGE 529 PLAN?
Private College 529 Plan is a prepaid tuition plan where you lock in and pay today’s tuition rates for whenever your child goes to school. Unlike most state-sponsored 529 plans where you are incentivized to attend school in that state, Private College 529 plan offers access to nearly 300 private schools nationwide!
That means the sooner you save, the better. If your child wanted to attend a private college in 2027, he or she could end up paying the 2017 rates. That can result in some serious savings for both you and your child.
HOW DOES IT WORK?
It is simple. You create a free account with as much as you would like (no minimum requirement). Then, start making contributions.
Every penny you contribute is a pre-payment towards the college tuition certificate. This certificate is guaranteed as the universities in the program are contractually obligated to accept your locked in tuition rate.
There are nearly 300 schools who are a part of the program. These schools include large research universities, liberal arts colleges, science and engineering schools, faith-based institutions, city campuses, rural colleges, suburban campuses and more. You’ll find:
Here is a simple example of how it works:
Let’s say College A has an annual tuition cost of $35,000 per year right now. You fund the full $35,000 to your 8-year-old child’s account. In ten years, the cost of the same tuition is now $51,809 per year. You’ve just save $16,809 a year on your child’s college education!!
You can start your free account today by heading to the Private College 592 Plan page.
SO, WHAT’S THE CATCH?
I wondered this myself and so did a lot of research. And, there isn’t one. The only thing is that you must wait at least 36 months before you use the money towards tuition. That’s it.
WHAT HAPPENS IF MY CHILD ATTENDS A DIFFERENT COLLEGE?
The plan will take care of you. If your child elects not to attend one of the nearly 300 colleges and universities covered under the plan, you have options.
- You can roll the assets to your state 529 plan and use the funds towards another college.
- Name a new beneficiary from the same family.
- Submit a refund request and pay for qualified college expenses.
- Submit a refund request and use it for anything you would like (note that there could be tax implications if this is the option you select).
That means no worry that you will fund an account you cannot use. The money will always be yours. You can use the funds for any college or university, but the prepaid tuition guarantee applies only to participating schools.
WHAT ELSE DO I NEED TO KNOW?
I’ve thoroughly reviewed this site and program and it is honestly one of the best I’ve seen. There is absolutely no risk to you or your child.
One question you may have is about the fees. There are none. Nope. Absolutely no fees to be a part of this program.
I also did research regarding income limits. They set the account limit annually, which is equal to five years’ tuition at the plan’s most expensive school. As of today, that amount is $262,450.
As a parent, I want to help my kids be as successful as they can. One way to do that is for me to help ensure that they get a secondary education. And, if they have a dream of an elite school, I’d love to help make that a reality. Best of all, if there is a way to help save us money in the process, that makes it a win-win situation.
Keep in mind that rates often increase on July 1st of each year. That means you need to act now to ensure that you get started now!! It is the right time to save more money for your family in the future.
Check out the Private College 529 Plan and enroll today!
*Having a Private College 529 account does not guarantee admission to any school or affect the admissions process.