The University of St. Thomas has joined Private College 529 Plan as one more way to help families save for and afford a private college education.
PC529 is a prepaid tuition plan that allows participating families to lock in today’s tuition rates for future use. Families purchase tuition certificates that guarantee the student’s tuition at current rates at any of the plan’s more than 275 member institutions for 30 years – no matter how much tuition rises or what happens in the financial markets.
With private school tuition still rising 3 percent to 5 percent a year, families potentially can save thousands of dollars on the cost of undergraduate education with PC529 Plan. Funds in the plan can be used only for tuition and mandatory fees at member institutions, so it can work alongside any traditional 529 savings accounts to pay for room and board, books and other higher education expenses. If the student does not attend a member school, funds in the plan can be rolled over to another 529 plan or the beneficiary can be changed.
“St. Thomas is a great addition to our prestigious list of private colleges and universities across the country and is the plan’s eighth school in Minnesota,” said Nancy Farmer, president of PC529 plan. “With tuition changes taking effect July 1, we are very pleased that interested families will now have the opportunity to lock in current rates for future education.”
St. Thomas is the 279th higher education institution to join the plan’s consortium of American private colleges and universities. The diverse range of member schools includes research universities; liberal arts colleges; religious schools; science and technology institutions; and more.
The PC529 Plan’s most recent surveys of 1,000 parents of 13- to 17-year-olds, and 1,000 teens in that same age range, found that 92 percent of each group said saving for college is important, yet only about a third of the parents are using tax-advantaged 529 plans to save for college.
For more information on college savings options, to learn about college planning strategies or to sign up for the plan, visit: http://www.tomorrowstuitiontoday.org