Virginia Business - News: College savings plans in Virginia

College savings plans in Virginia

July 28, 2010 6:00 AM

Virginia Prepaid Education Program (VPEP)

Buy tomorrow’s college education today
Lets Virginia families prepay the cost of tomorrow’s college tuition and mandatory fees today.
Contract payments cover future in-state undergraduate tuition and mandatory fees for the normal full-time course load at Virginia’s public colleges and universities.
These benefits may also be applied toward the cost of tuition and fees at VA private colleges as well as most colleges and universities nationwide, and in certain cases, around the world too.

Virginia Education Savings Trust (VEST)

No age limits or state residency requirements; open one any time
an individual savings account, invested in your choice of portfolios of stocks and bonds, intended specifically for the payment of qualified higher education expenses for the designated beneficiary.
Contract payments cover future in-state undergraduate tuition and mandatory fees for the normal full-time course load at Virginia’s public colleges and universities.
can be used for a wider range of higher education expenses than VPEP; start saving now to help avoid debt later.

CollegeAmerica

VCSP’s partnership w/ the American Funds, one of the oldest and largest mutual fund companies in the country
Offers unique opportunity to choose from 22 American Funds while working w/ your financial adviser to build a college savings plan that meets your specific needs.
Available only through financial advisers.
Allows you to save tax free for qualified higher education expenses including: tuition, mandatory fees, room and board, textbooks, supplies and equipment required by a college for a student’s enrollment.

CollegeWealth

the Commonwealth’s Federal Deposit Insurance Corporation (FDIC)-insured-529 college savings program, provided in partnership w/ participating financial institutions
Allows families to benefit from the federal and, for VA residents, state tax advantages of 529 accounts—and take advantage of the FDIC insurance coverage of a bank deposit account—by opening a CollegeWealth bank account to save for their children’s or their own higher education
May appeal to conservative investors as each CollegeWealth college savings account w/ a value up to $250,000 (when combined w/ any other holdings of an individual at any one bank) is backed by the FDIC.
Flexible, w/ no state residency requirement and no income phase outs.
affordable for everyone, w/ low initial account deposits and interest rates established by each participating bank or financial institution.