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Virginia529 Considers Modifications to prePAID for Future Contracts

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No Change for 2016-2017 Enrollment Period

As Virginia529 celebrates its 20th anniversary of offering tax-advantaged college savings programs to the public, we also are studying prePAID to ensure that we have the optimum model for the future. This ensures we are meeting our mission of helping make college more affordable and accessible to all Virginia families.

A number of factors contributed to the need for a study. The cost of tuition and fees at all universities has increased in the past 20 years, increasing substantially the cost of a prePAID contract. In addition, Virginia’s public universities have developed a number of tuition models with an increasing disparity between the cost of the least and most expensive institutions.

Although we offer savings programs with initial deposits as low as $25, Virginia529 is exploring ways to make the prePAID program more affordable and flexible to use for a broader group of families.

The study began in late 2015 under authorization by the Virginia529 Board. During the remainder of 2016 and throughout 2017, Virginia529 will explore a modified model for prePAID contracts purchased in the future.

This process will involve discussions with a variety of stakeholders, including customers, institutions of higher education, the State Council of Higher Education for Virginia (SCHEV) and members of the Virginia General Assembly and the Administration. After those conversations and further study, the next step in the process would be to request a legislative change by the Virginia General Assembly no earlier than the 2018 Session. Any program changes would not be implemented before December 2018. Existing contracts will NOT be impacted by any changes, should they occur.

The next enrollment period for prePAID is expected to begin December 1, 2016 and run through March 31, 2017 as in past years. Subscribe to Virginia529.com for the latest information about prePAID and saving for higher education.

Virginia529 prePAID


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