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Prepaid529 is PERMANENTLY closed for new enrollment. Subscribe to receive updates on a new similar program Virginia529 is developing.

Virginia529’s original qualified tuition program

What’s Next for Prepaid Tuition?

For more than 20 years, Virginia529 has helped thousands of families save for college by offering a program that allows them to prepay tuition and mandatory fees through Prepaid529.

And while Virginia529’s original mission remains intact --- rewarding and encouraging higher education savings with a tax-advantaged and market-protected savings vehicle --- families want college savings options that are affordable, flexible and easy to use..

The steep increase in the cost of higher education since Prepaid529 opened in 1996 has put the cost of contracts out of reach for most Virginia families. That’s why Virginia529 leadership made the decision to permanently close Prepaid529 to new enrollment as of May 1, 2019.

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Using Prepaid529 for qualified higher education expenses

At Virginia public institutions:

After your child applies to and is accepted at a Virginia public two- or four-year college or university, simply log into your secure Virginia529.com profile and complete a form advising Virginia529 of the school your student is attending. Virginia529 pays the in-state tuition and mandatory fees directly to the school.

At out-of-state or Virginia private institutions:

You may use Prepaid529 benefits at Virginia private colleges or out-of-state colleges, however payouts for eligible educational institutions not in the Virginia public higher education system may not cover the full cost of tuition and mandatory fees.

Virginia public college or university

Full coverage of in-state undergraduate tuition4

Virginia private college or university

Payments + actual rate of return on payments

Out-of-state college or university

Payments + reasonable rate of return on payments


How to Use Your Account

Here’s some helpful information to guide you when you’re ready to access your benefits. Watch a webinar or tutorial anytime to learn about the process.


Additional information

Tax benefits of Prepaid529

Prepaid529 contract owners enjoy the same tax advantages as with other Virginia529 programs:

  • Deductions for annual contributions, up to $4,000 per account, from Virginia taxable income for the account owner
  • Tax-free earnings
  • Tax-free distributions for qualified higher education expenses
  • Favorable federal gift and estate tax treatment

Maximum balance

Virginia529 limits an individual beneficiary’s cumulative account balance for all Virginia529 accounts (regardless of program) to $500,000.

Mandatory fees

Mandatory fees do not include laboratory fees, course-specific or optional fees, room and board, transportation, computers or textbooks. Additional charges for a specific course of study, such as nursing or engineering, or for a course load above normal full-time are not covered by Prepaid529.

College admissions

Ownership of a Prepaid529 contract has no bearing on the admissions process at Virginia colleges or those elsewhere. A student must apply to and be accepted by the school he or she wishes to attend.

State obligation

To cover Prepaid529’s contractual obligations in the event of a Virginia529 funding shortfall, Virginia law provides that a sum sufficient appropriation must be included by the Governor in his annual proposed state budget bill. This provision can only be changed through the annual appropriations process, which would require action by the Virginia General Assembly.

Risk

Please refer to the Prepaid529 Program Description for a discussion of risk factors associated with Prepaid529.


1. For purposes of Prepaid529 only, Virginia529 defines tuition as the undergraduate in-state semester or term charges for tuition and mandatory fees required and imposed as a condition of enrollment of all students by a two-year or four-year Virginia Public Institution. Please see the Prepaid529 Master Agreement for a complete definition.