Does Virginia have a prepaid college plan?

Does Virginia have a prepaid college plan?

Launched in 1994, the state’s 529 program was among the first in the nation, and is now the largest. Virginia was only 1 of 10 states to offer residents a 529 prepaid tuition program in addition to the more standard 529 college savings plan.

What does the Virginia 529 plan cover?

What will Prepaid529 pay when my child attends college? 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.

How much can you contribute to a Virginia 529?

Contributions to Virginia529 accounts are treated as a completed gift by the account owner to the beneficiary. This means contributions up to $15,000 a year, or up to $30,000 if married, are gift tax free.

What is the minimum to inVEST in a 529 plan?

There is no minimum to open or contribute to a 529 account. With the automatic investment plan , the minimum contribution level is $15 per month or $45 per quarter. The initial and additional contribution minimum is $25.

Is Virginia prepaid tuition a good deal?

The prepaid tuition plan is a good deal only if he attends the most expensive public college in Virginia. However, to attend a Virginia private school, the VPEP will pay a total of $26,175 which represents an annual 6.4% gain. VPEP will only pay $19,966, a mere 3.2% annual gain.

How do prepaid tuition plans work?

A prepaid tuition plan is a college savings plan that allows you to pay for future college tuition at today’s rate. After you purchase the credits, the plan administrator will invest the money, though your payout in the end is still guaranteed based on current in-state tuition costs.

Are prepaid tuition plans a good idea?

As tempting as their proposition sounds, prepaid tuition plans are better in theory than in reality. In most cases, the same amount of money invested in a conventional age-based 529 college savings plan will go much further, and there are fewer restrictions on how you can use the money.

Is a 529 considered a prepaid tuition plan?

Section 529 college savings plans are tax-exempt college savings vehicles with a low impact on need-based financial aid eligibility. Unlike prepaid tuition plans, there is no lock on tuition rates and no guarantee. Every parent should consider investing in a 529 college savings plan for their children.