Tuition Track Portfolio - Available February 2021

Introducing the Tuition Track Portfolio

Keep your family on track to cover the average cost of Tuition, plus other qualified higher education expenses.

Tuition costs rise nearly every year. Take the guesswork out of your savings with Invest529’s new portfolio option, exclusively for Virginia residents - the Tuition Track.

Invest in a Portfolio Option that Keeps Pace with Tuition Growth

Tuition Growth

College tuition has grown an average of almost 5% a year for more than a decade. With the Tuition Track Portfolio, your savings will grow at the same rate as Average Tuition¹ at Virginia public colleges and universities - without the risk of stock market volatility.

The Tuition Track Portfolio is a Principal Protected Portfolio, which means it is designed to protect against losses to the original amount you’ve invested, making it generally a more stable investment than some other portfolios.

Every Year, the Average Tuition at Virginia Public Colleges and Universities will be Calculated

Current Average Tuition

$13,636 per year

The Average Tuition is divided into 100 units to determine the cost of an individual unit. A unit equals 1/100th of an academic year. The cost to purchase a unit and the maturity value of the units you've already purchased will shift annually to match Average Tuition costs.

Tuition Track Unit Price

$13,636 ÷ 100 = $136.36/unit

You choose how many units to purchase and how often to buy them. As with other Invest529 portfolios, you can make a one-time contribution, which purchases unit increments with each dollar invested. Or, you can put your purchases on autopilot by setting up automated monthly contributions from your checking or savings account.

Chart illustrates Tuition and Fees 2020-2021. Tuition and Average Tuition amounts are for illustration purposes only. Source: State Council of Higher Education for Virginia.

Using Your Units

When it’s time to use your units, your student will receive one year of the current Average Tuition for every 100 units previously purchased, regardless of how much tuition rates have grown.

Currently, Tuition at more than half of Virginia's colleges costs less than 100 units a year. To cover the costs of attending a higher-than-average priced college, or to cover costs beyond tuition, consider purchasing more than 100 units for each year.

School A

If your school charges more than Average Tuition, you still will have more to pay to cover the Tuition bill.

At School A, you would need to use 183.3 units of Average Tuition (183.3 units * $136.36/unit = $25,000) to cover your annual Tuition.

$25,000

Current Tuition & Fees

- $13,636

100 Units paid

- $11,364

Left to pay toward Tuition

School B

Some lower priced schools, or many community colleges, may charge less than Average Tuition. In that case, your surplus units could be used toward room and board, meals, books, or any other qualified higher education expense.

If you only wanted to cover Tuition for one year at School B, you would need to use 80.7 units of Average Tuition (80.7 units * $136.36/unit = $11,000).

$11,000

Current Tuition & Fees

- $13,636

100 Units paid

+ $2,764

Surplus for other qualifed higher education expenses

Tuition Track Calculator

Use the Tuition Track Calculator to figure out how many units you can buy based on your budget.

Launch the calculator

What Tuition Track Covers

Use your savings at Virginia public, private, or even out-of-state colleges - you'll receive the same value for your units wherever your student goes!

The value of your units is based on the average cost of Tuition at public colleges and universities in Virginia, but Tuition Track units can be used at both public and private institutes of higher learning anywhere in the country - and beyond! You can use them to pay for more than just tuition - books, meal plans and all other qualified educational expenses can be covered by Tuition Track units.

How Tuition Track Portfolio Differs from Other Invest529 Portfolios

Just like other Invest529 portfolios, Tuition Track Portfolio offers tax-free growth and is eligible for the $4,000 Virginia state tax deduction.

There are a few differences to consider before investing:

* If you choose to redeem your units earlier than the Expected Usage Date and you are not using them for eligible post-secondary courses, you'll receive your contributions plus Tuition Track Interest, assuming the units have been held for three or more years.

Tuition Track Portfolio FAQs

Can Tuition Track Portfolio units be used for K-12 education?

Tuition Track Portfolio units may be used for K-12 tuition, however the value will be the refund rate, not Average Tuition.  As with Prepaid529, Tuition Track accounts are designed to be used for post-secondary education.

Can I transfer units to another beneficiary?

Yes, account owners can transfer units to younger and older siblings, and to the Members of the Family of the beneficiary within the same generation of the original beneficiary who are eligible to participate at the time of purchase. The Expected Usage Date will change as the beneficiary changes.

What happens to my units if I move out of state?

Account owners who were Virginia residents when their account was opened can continue to purchase Tuition Track Portfolio units after they’ve left the state.

How will I know when the Tuition Track Unit Price changes?

The Tuition Track Portfolio Unit Price adjusts annually on or around July 1, however account owners will receive advanced notice of the price changes.

See all FAQs

¹ Average Tuition is defined as the average of Tuition based on the number of full-time equivalent undergraduate in-state students enrolled at each applicable public institution. Tuition at each Virginia public 4-year institution is multiplied by that institution's enrollment percentage of full-time equivalent undergraduate in-state students and then summed to reach the academic year's weighted average Tuition. Tuition means the normal, full-time undergraduate in-state semester or term charges for Tuition and mandatory fees required and imposed as a condition of enrollment of all students by any four-year Virginia Public Institution. See Program Description for a complete definition.