Samford University and University of Mobile are among more than 200 colleges nationwide that are participating in the Independent 529 Plan, a prepaid college tuition plan tailored specifically for private colleges. Other Alabama Christian colleges involved are Birmingham-Southern College and Faulkner University in Montgomery.
“Basically, you’re locking in tomorrow’s education at today’s prices,” said Steve Lee, vice president for business affairs at the University of Mobile.
For purchasers, the effectiveness of the Independent 529 Plan does not hinge on stock or bond market performance. Instead, contributions pre purchase tuition, in part or in whole. Proceeds may be used at any of the participating colleges.
“Think of it as buying a shopping certificate for use at any of the stores at the mall,” said Doug Brown, president and CEO of Tuition Plan Consortium, the Albuquerque, N.M.- based nonprofit group that oversees the plan. “Students don’t choose their college at purchase, but after they have applied and are accepted in the regular manner.”
Brown said participating in an Independent 529 Plan does not guarantee admission or enrollment at participating institutions and may limit the beneficiary’s eligibility for financial aid.
Contributions must total at least $500 within two years, and the maximum contribution limit is equal to five years of tuition at the most expensive participating college.
Individuals may open an Independent 529 Plan account at no charge as well as locate member institutions and learn about refund policies and other plan features by calling 1-888-718-7878.
For more information, go to the resources section of www.thealabamabaptist.org.
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