Participating Schools Set Private College 529 Plan Apart

No other plan enables you to prepay tuition for such a wide range of colleges and universities. Your prepaid Tuition Certificates can be used at any participating school or any school that joins in the future. You must wait at least 36 months after you purchase a Tuition Certificate to use it to pay tuition.

You don’t worry about future tuition increases or market volatility. You have no investments to choose or manage. Your prepaid Tuition Certificates are guaranteed by the participating schools.

You don’t have to contribute to your account monthly or quarterly. Contribute the amount you want, when you want. If your student doesn’t attend a member school, you have several options.

Save Money on the Cost of College

Because you prepay tuition, you avoid years of tuition hikes. The earlier you start contributing to your account, the greater your potential savings.

Prepaid Tuition Certificates are Guaranteed

Participating schools are contractually obligated to honor the tuition you have prepaid.

No Fees

You pay no fees. Participating colleges and universities absorb all expenses. Every dollar you contribute to the Plan pays for future tuition.

​No Risk of Market Volatility

You don’t select investment options or worry about what happens in the financial markets. The tuition you purchase today will be there tomorrow. Tuition Certificates will never lose value.

Open to All

There are no income limits. The account limit is set annually, equivalent to five years’ tuition at the Plan’s most expensive school. Currently, it is $317,030.

A School for Everyone

Participating schools include large research universities, liberal arts colleges, science and engineering schools, faith-based institutions, city campuses, rural colleges, suburban campuses and more. Having a Private College 529 account does not guarantee admission to any school or affect the admissions process.


If your student beneficiary does not attend a participating school, you have options.

  1. Name a new beneficiary from the same family – sibling, cousin, etc.
  2. Roll the assets into a state 529 plan and use the funds to pay qualified college expenses.
  3. Request a Withdrawal* and use the assets to pay qualified college expenses as above.
  4. Request a Withdrawal* and use the assets to pay for anything other than qualified college expenses. There could be tax and penalty implications with this option. Consult your tax advisor for information specific to your situation.

Tax Advantages

Congress established 529 plans to give families incentives to save for college. The increase in value of your account is tax deferred, and if used for qualified college costs, the increase in value is never taxed. In half a dozen states, contributions to Private College 529 accounts are eligible for state income-tax deductions or credits.

Private College 529 Plan is a great tax- and estate-planning tool. Parents and grandparents can contribute up to $15,000 per child each year ($30,000 for joint filers) without incurring federal gift tax. There is also the option of an account owner’s contributing up to $75,000 per beneficiary ($150,000 for joint filers) to prorate over five years. Contributions to 529 plans are excluded from the account owner’s estate.** Consult a tax advisor for full details.

*See Disclosure Statement for details. The Withdrawal amount will be paid from the Program Trust only. If you take a Withdrawal rather than redeem your tuition certificates for their intended purpose, the Withdrawal will be adjusted based on the net performance of the Program Trust, subject to a maximum increase of 2% per year, and a maximum loss of 2% per year. If your Withdrawal amount is not used to pay for qualified higher education expenses, the earnings portion of that amount will be subject to U.S. federal income tax and a 10% additional tax.

**If the account owner dies before the end of the five-year period, a prorated portion of the contribution allocable to the remaining years in the five-year period, beginning with the year after the contributor’s death, will be included within his or her estate for federal estate tax purposes.