Prepaid Tuition Plan for Independent Colleges Approved
February 13, 2003
The Independent 529 Plan, a new prepaid college tuition plan tailored specifically for independent colleges, recently received its final regulatory approval under Section 529 of the Internal Revenue Code. Earnings on investments will be tax-exempt. Independent U.S. colleges that participate in the program will honor the plan’s tuition certificates.
Unlike 529 college savings programs in which people invest contributions for later use when college is attended, Independent 529 Plan contributions represent the purchase of a portion of an independent college's tuition at today's prices, which will be accepted as payment when the student eventually attends an independent college.
According to Doug Brown, president of Tuition Plan Consortium (TPC)—the nonprofit group that will run the program—the benefit will be even greater, given that a participating independent college will also offer and guarantee a certificate discount on tuition for the year in question.
TPC is targeting the start of the plan—allowing the purchase of tuition certificates—for this summer. TIAA-CREF Tuition Financing, Inc. will administer the plan, and TIAA-CREF Trust Company, FSB, will manage its investments.
- Federal Education Budget Limited by Spending Caps
- Lawmakers Ease 1098-T Penalty Enforcement
- EPA Announces Athletic Conferences With Most Green Power
- 2015 CAO and CBO Collaborations
August 3-4, 2015
- 2015 Planning and Budgeting Forum
September 28-29, 2015
- 2015 Tax Forum
October 25-27, 2015
- WEBCAST: Developing Your Campus Distance Learning Strategy
Wednesday, August 12, 2015 1:00PM ET
- WEBCAST: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
Wednesday, September 9, 2015 12:00PM ET
- ON-DEMAND: A Just-in-Time Webcast to Explain FASB’s NFP Reporting Proposal
- ON-DEMAND: Decoding ED's Cash Management Proposal
- ON-DEMAND: Corporate Sponsorships: Getting it Right
- ON-DEMAND: Analytics that Support Planning, Budgeting, and Results
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis