This page is for current contract holders and includes resources, details and instructions on managing and using your account. For information on the new Invest529 Tuition Track Portfolio, click here.
Payout will be based on the type of institution the student will attend, but will fall into one of three categories:
Tuition and mandatory fees for normal full-time course load in a general course of study. Additional charges for specific majors, classes or programs are not covered.
The lesser of 1.) Contract payments made plus the actual rate of return or 2.) The highest in-state undergraduate tuition and mandatory fees at Virginia public institutions in the semester in which benefits are used.
The lesser of 1) Contract payments made plus a reasonable rate of return or 2) The average in-state undergraduate tuition and mandatory fees at Virginia public institutions in the semester in which benefits are used.
After submission and acceptance of the withdrawal request, Virginia529 will make payments on a semester-by semester basis, but the method will vary depending on if the school is located in Virginia or another state.
Virginia529 will pay funds directly to Virginia public or private schools each semester after the school’s add-drop period and upon receipt of an invoice from the school. Do not pay the Virginia public college or university for tuition and mandatory fees covered by your Prepaid529 account – the school will invoice Virginia529.
Payouts to private colleges and universities may not cover the full cost of tuition and mandatory fees. Most schools will typically issue a temporary adjustment for the anticipated payment from Prepaid529. Check with the school to make sure the temporary adjustment has been made and that any difference in anticipated payment and the actual amount due to the school is paid by the school’s due date.
The account owner is responsible for submitting a new withdrawal request each semester. Funds can be sent to an institution, the beneficiary, or to reimburse yourself for other qualified higher education expenses. Virginia529 will not directly communicate with an out-of-state school to arrange payment.
Includes detailed information on accessing account benefits, how benefits are calculated, the payment of funds to institutions and more.
Select “My Profile” to access your account information and make any necessary updates.
The account status in located in the Account Overview section of the Account Summary page.
Select “Manage My Accounts”, then “Withdraw Funds”.
If the beneficiary is attending an institution in Virginia, the withdrawal request only needs to be submitted once. Virginia529 will pay the institution each Spring and Fall semester until benefits are exhausted or otherwise requested. A new withdrawal request should be submitted each semester if the beneficiary attends an institution outside of Virginia.
Prepaid529 Program Description & Master Agreement.
Prepaid529 reasonable rates of return since inception.
Prepaid529 funds undergraduate in-state tuition and mandatory fees assessed to all students at Virginia public two- and four-year institutions. It does not cover room and board, books, supplies and other qualified higher education expenses. Prepaid529 also does not cover any additional charges of any type for specific courses of study, such as nursing or engineering, that an institution may require or for more than a normal full-time course load. Some families choose to save for these other costs with a Virginia529 savings account, such as Invest529 or CollegeAmerica, as a child may be the student of more than one Virginia529 account.
If the student stops attending school, immediately submit a Stop Benefits request. Stopping your Prepaid529 benefits is a convenient online process.
Follow the steps below to submit a request.
Virginia529 will no longer make payments to the school once the request has been submitted and accepted. To begin using benefits again, the account owner should submit a new withdrawal request.
Prepaid529 permanently closed for new enrollment as of May 1, 2019. There will be no changes to existing Prepaid529 contracts, and current contracts will retain the Prepaid529 benefit structure in effect at the time of purchase.
Earnings grow free from state and federal taxes when used for qualified expenses. Taxpayers may deduct from individual Virginia taxable income contributions of up to $4,000 per account per year made to a Virginia529 account. If you contribute more than $4,000 to an account in one year, you may deduct up to $4,000 per year until you have claimed all of your contributions.
Virginia public institutions of higher education include a number of options, giving you a great deal of choice for using your Prepaid529 account. Find a list on the website of the State Council of Higher Education for Virginia (SCHEV) under “Virginia Public Colleges and Universities.” Note: you may use your Prepaid529 account toward tuition at schools listed under “Private & Out-of-State Institutions” on this page, however your benefit will be different and may not cover the full cost of tuition and mandatory fees.
No. Students can use Prepaid529 accounts at private Virginia colleges and universities and schools outside of Virginia, but the benefits differ.
At private colleges and universities in Virginia, Prepaid529 pays the lesser of the following:
At public or private colleges and universities outside Virginia, Prepaid529 pays the lesser of the following:
* This is determined by the Virginia529 Board and currently follows the quarterly performance of the Institutional Money Funds Index as reported in the Money Fund MonitorTM by iMoneyNet.
Prepaid529 should not affect a student’s eligibility for merit–based scholarships. If your child receives a scholarship, you have several options including:
529 accounts, including Prepaid529, may have an impact on financial aid offers from colleges and universities. In the calculation of a student’s Expected Family Contribution (EFC) for financial aid, 529 accounts with a parent or a dependent student listed as the account owner are assessed at a maximum of 5.65 percent of the account’s value, depending on other reportable household assets. 529 accounts owned by an independent student, a non–custodial parent or a third party (for instance a grandparent) are assessed at higher rates.
A Prepaid529 account must be used within 10 years of the date a student is projected to graduate from high school (also called Projected Enrollment Date).
If the student listed on your account served as an active-duty member of any branch of the United States Armed Forces after their high school graduation, that time will not be counted toward the 10-year period. For more information regarding extension requests, see the Prepaid529 Program Description and Master Agreement.
You can elect to continue to own and make payments to your Prepaid529 account. Your student may use their paid-in-full account at any eligible institution to which they applied and are accepted. However, if your child chooses to attend a Virginia public college or university and is no longer eligible for in-state tuition, Virginia529 will not pay the difference between the in-state and Non-Virginia resident rates.
No. You cannot change the student on your Prepaid529 account once it is in TN status.
A status of “TN” on your quarterly statement or online account indicates that more than 10 years have passed since the projected high school graduation date of the beneficiary (student) listed on your Prepaid529 account (also called Projected Enrollment Date). Per the Prepaid529 Program Description and Master Agreement, all Prepaid529 benefits must be exhausted by the tenth anniversary of the student’s projected graduation date.
Once your account reaches TN status, Virginia529 will close the Prepaid529 account approximately 30 days later and automatically transfer the funds into an Invest529 FDIC-Insured Portfolio account for you to use. If you do not have an FDIC-Insured Portfolio, one will be created for you. Account Owners will receive a notification via email and mail detailing this process.
Prepaid529 contract owners enjoy the same tax advantages as with other Virginia529 programs:
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.
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.
Virginia529 limits an individual beneficiary’s cumulative account balance for all Virginia529 accounts (regardless of program) to $550,000.
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.
Please refer to the Prepaid529 Program Description for a discussion of risk factors associated with Prepaid529.
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