Michigan Wants You to Consider Funding College for Christmas

Parents and grandparents are being encouraged to think outside of the box this Christmas – and give the gift of college credits instead of games or toys.

MetThe Michigan Education Trust, run by the State Department of Treasury, is a way families can start building a college savings plan.

Anyone can pre-purchase tuition to state colleges and universities at today’s tuition rates.
The “MET” has both lump-sum options and monthly purchase plans.

Larry Flynn is a Financial Advisor with Centennial Wealth in Traverse City. He says, “I like the Michigan Education Trust. Because it’s more of a prepaid tuition. I could kick myself for example when I go back and think, some of my sons, what I could have paid for four years of college, if it was a lump sum. It was a pittance to what it actually ended up costing.”

As an added incentive, the state Treasury is offering a $100 matching grant for the first 300 people who enroll in December.

And here’s one other gift idea: grandparents can make a deposit in the name of their grandchild as a gift to their children; who in turn can use that money for their own children for college.

From the state of Michigan:

MET, the nation’s first 529 prepaid tuition plan, has helped tens of thousands of families since 1988 with an affordable way to save for college by pre-purchasing tomorrow’s tuition at today’s rates.

To encourage families to give the gift of college, MET is offering a $100 matching grant on contracts purchased for new beneficiaries during December. The incentive is available to purchasers who enroll online at SETwithMET.com before Dec. 31 using coupon code HOLIDAY20. MET will also waive its $25 enrollment fee in December.

Families are urged to act quickly not only to take advantage of the match, but also to qualify for a deduction on their Michigan tax return for purchases or contributions made by Dec. 31.

In order to help Michigan families strained financially by the COVID-19 pandemic, MET’s Board of Directors announced earlier this month that contract purchase prices will remain unchanged. The new contract year opens Dec. 1.

That means the prices of MET’s popular Pay-As-You-Go contracts will continue to range from $125 per credit hour for a community college contract to $612 for one credit hour to cover tuition and mandatory fees at any Michigan public university. Or you could pay $508 for a credit hour under a limited-benefits contract, which covers up to 105% of the weighted average tuition of Michigan’s public four-year universities.

MET also sells contracts through lump-sum and monthly purchase plans that require minimum purchases of a semester’s worth of tuition.

Only one account per beneficiary qualifies for the match and fee waiver, and MET will make the match after account holders complete their purchase of at least one credit hour of prepaid tuition.

More information about MET and match eligibility and rules is available here or by calling 800-MET-4-KID