Virginia 529 Program Prepares To Phase Out Prepaid Program
Tuesday is the last day Virginia529’s prepaid college savings program is enrolling new applicants. The group plans to roll out a new program early next year with a few changes.
Historically, the prepaid college savings program has covered a higher amount of tuition and fees for students who decide to go to school in-state than out-of-state. It’s a subtle pressure that Virginia 529 CEO Mary Morris says has helped families persuade their kids to stay closer to home.
“They really want their child to go to their alma mater,” Morris said. “They want them to go to a Virginia school.”
The program requires a contract, and families can pre-pay for 1-10 semesters. Morris says the new model that’ll be rolled out next year will be unit-based, and will be more affordable for more families.
“The earlier you start [saving], you just don't know where your child's going to go to school,” Morris said.
Morris says the new savings program will also be simpler. It’ll cover the same amount of tuition for in-state and out-of-state students.