Prepaid529 Benefits: Understanding your payout options
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.
How the payout works:
After submission and acceptance of the Intent to Enroll 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. Notify Virginia529 immediately if the beneficiary stops attending school or submit a new Intent to Enroll Form if they transfer to a new school.
For students attending a Virginia college or university
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.
For students attending an out-of-state college or university
Virginia529 will automatically transfer one semester of benefits to an Invest529 account each semester until the Prepaid529 benefits are fully depleted or the student transfers to a new institution.
The account owner is responsible for submitting an Invest529 Withdrawal Request to make payment to an institution, the beneficiary, or to reimburse yourself for other qualified higher education expenses. Funds needed for the fall semester will be transferred in mid-July and mid-November for the spring semester. A letter will be sent to account owners in early-July with specific information about the eligible payout amount for out-of-state colleges/universities.