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Private College 529 Plan
Brandeis University is a proud participant in the Private College 529 Plan, a prepaid college tuition plan tailored specifically for private colleges. Responding to a national call to make higher education more affordable and more accessible to students, Brandeis University has joined with more than 250 other private colleges and universities across the country to offer a tax-advantaged way for families to save for tuition.
The Private College 529 Plan allows you to:
- Prepay some or all of future private college tuition** at less than today’s price.
- Enroll at any time.
- Contribute to an account at any time.
- Redeem certificates at any of the participating schools.
- Make federal tax-free withdrawals.*
Moreover, with the Private College 529 Plan there are:
- No special eligibility requirements.
- No income limits for participation.
- No fees to account owners as participating colleges pay all fees related to management of the program.
Section 529 Plans, named for the IRS code that defines them, have gained in popularity over the last decade. Families are attracted to the plans because earnings on the accounts generate no federal income tax* if used as intended for higher education purposes.
As with all 529 programs, assets in a Private College 529 Plan account are transferable to other members of the family, and refunds are available if the student receives a scholarship or decides not to attend college.
Additionally, in the case of the Private College 529 Plan, assets are refundable if the student attends a school outside of the Tuition Plan Consortium.
For purchasers, the effectiveness of the Private College 529 Plan is not dependent on the performance of the stock or bond markets. Rather, contributions actually go toward pre-purchasing tuition**, in part or in whole, at less than today’s price because each school in the plan actually offers Plan participants a discount from current tuition rates.
For example, private Colleges A and B have agreed to honor certificates purchased under the Private College 529 Plan. College A has a tuition cost of $30,000 for this current year and College B, $10,000. A person who makes a $10,000 contribution into the Independent 529 Plan this year would receive tuition certificates that would cover 33.3% of a year’s tuition at College A or a whole year at College B, regardless of how high tuition may be at the time the student eventually chooses to use the certificates.
In fact, because participating institutions must offer a discount off their current tuition fees, the certificates would cover slightly more tuition at each college in this example. At a minimum, institutions must offer a half percent per year off current tuition rates.***
Individuals can open a Private College 529 Plan accounts, browse the most current member college list and explore plan features on our website.
The tax information contained herein is not intended to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties. It was written to support the promotion of Independent 529 Plan. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
* This is provided that withdrawals are used to pay for qualified tuition expenses. Purchasers should read the Disclosure Booklet, including the Enrollment Agreement, carefully before making purchase decisions. TIAA-CREF Individual & Institutional Services, LLC distributor, member NASD, SIPC. Tuition Plan Consortium, LLC is the program sponsor and TIAA-CREF Tuition Financing, Inc. is the program manager.
**All references to tuition include mandatory fees. The program does not cover room and board at this time.
*** Participation in Independent 529 Plan does not guarantee admission to any college or university, nor does it affect the admissions process. Each year, each member college offers a discounted rate of at least 0.5% less than its current tuition rates. Discount rate can vary from year to year.
† As of January 2007