THE U.PLAN, REVEALED MASSACHUSETTS EDUCATIONAL FINANCING AUTHORITY 1 About MEFA •Not-for-profit state authority created in 1982 •Helping families plan, save, and pay for college •Keeping you on track with college planning: –mefa.org: Information, tools, & resources –Emails: Sign up! –Facebook, Twitter, & LinkedIn –Webinars: Register online –YourPlanForTheFuture.org 2 The U.Plan Basics • Your U.Plan contribution is your prepayment for up to 100% of tuition & mandatory fees • You purchase Tuition Certificates, allowing you to lock in today’s tuition and mandatory fee rates at a network of MA public and private colleges & universities • U.Plan Tuition Certificates: • Represent interest in Commonwealth General Obligation Bonds • Are backed by the full faith and credit of the Commonwealth of Massachusetts • Are not subject to market fluctuation • $300 minimum contribution to get started • No maximum contribution • Annual enrollment period: May 1st to June 30th • No MA residency requirement 3 U.Plan Benefits •Money saved in the U.Plan grows federal and MA state tax free •Any unused U.Plan money is returned to the owner without penalty and including interest accrued at Consumer Price Index (CPI) •No need to select a college until the beneficiary is ready to attend •Account owner has full control of account and beneficiary assignment •Beneficiary can be changed at any time 4 The U.Plan Advantage: Locking In a Percentage Percentage •As tuition costs vary, your Tuition & Initial of Tuition & Institution lock-in percentages vary Fees Investment Fees Locked In • Contributions year after year add up to a greater percentage College A $5,000 $1,000 20% of lock-in • U.Plan locks in only tuition and College B $10,000 $1,000 10% mandatory fee expenses College C $25,000 $1,000 4% 5 The U.Plan Network of Colleges & Universities American International College Fisher College North Shore Community College Amherst College Fitchburg State University Northeastern University Anna Maria College Framingham State University Northern Essex Community College Art Institute of Boston at Lesley University Gordon College Pine Manor College Assumption College Greenfield Community College Quinsigamond Community College Babson College Hampshire College Regis College Bay Path College Hebrew College Roxbury Community College Benjamin Franklin Institute of Technology Hellenic College Salem State University Bentley College Holyoke Community College Simmons College Berklee College of Music Laboure College Smith College Berkshire Community College Lasell College Springfield College Boston College Lesley University Springfield Technical Community College Boston University Massachusetts Bay Community College Stonehill College Bridgewater State University Massachusetts College of Art and Design Suffolk University Bristol Community College Massachusetts College of Liberal Arts University of Massachusetts Amherst Bunker Hill Community College Massachusetts Maritime Academy University of Massachusetts Boston Cape Cod Community College Massasoit Community College University of Massachusetts Dartmouth Clark University Merrimack College University of Massachusetts Lowell College of Our Lady of the Elms Middlesex Community College Wellesley College College of the Holy Cross Montserrat College of Art Wentworth Institute of Technology Curry College Mount Holyoke College Western New England University Dean College Mount Ida College Westfield State University Eastern Nazarene College Mount Wachusett Community College Wheaton College Emerson College New England Conservatory of Music Wheelock College Emmanuel College Newbury College Worcester Polytechnic Institute Endicott College Nichols College Worcester State University 6 The U.Plan and Financial Aid •When applying for college financial aid, the U.Plan is considered a parent asset. •The financial aid formula assumes families will use up to just 5.6% of parent assets to pay for college costs. •Bottom line: The U.Plan, as with other college savings plans, does not significantly impact a student’s eligibility for financial aid. 7 Participating School Changes •If a college or university joins the U.Plan, it must honor Tuition Certificates purchased since the program started in 1995. •If a college or university drops out of the U.Plan, it must honor all Tuition Certificates purchased prior to the year it withdrew from the program. 8 Downloading an Enrollment Kit & Purchase Request Form Download an Enrollment Kit and Purchase Request Form at: mefa.org/uplan 9 Completing & Submitting Your Purchase Request Form 1. Complete the owner and beneficiary sections 2. Select one or several maturity year(s), the year(s) when the beneficiary will attend college. 3. Sign your form and mail it in with your personal check Consider a 4-year strategy Think about saving for all four years that your child will be in college 10 What Happens Next? • Once we receive your Purchase Request Form and check, we will send you a confirmation letter • You will receive your annual statement in the fall showing the percentage you have saved at all of the schools within the U.Plan’s network of colleges and universities • Your renewal kit will be sent in May of each year, giving you the opportunity to purchase additional Tuition Certificates • We encourage you to sign up for MEFA emails on mefa.org to receive timely and relevant information on all steps of the college planning process 11 Questions? Angelina Mancini Early College Planning Manager [email protected] (617) 224-4817 [email protected] (800) 449-MEFA (6332) .