Lock In Tuition Costs

Recognizing both the importance of higher education and the difficulty parents face in paying tuition costs, Berklee College of Music and other private or independent colleges and universities across the country have joined a nonprofit organization that offers financial relief. The Independent 529 Plan, an outgrowth of recent federal legislation (Section 529 plans), makes it possible for parents to buy Berklee tuition credits for their precollege-age children at today's prices-or less. This unique plan guarantees the option to prepay tuition at hundreds of colleges at the same rates or less as those being paid at the same institutions today.

While many prior plans were restricted to public colleges within the state providing the plan, the Independent 529 Plan is more attractive because these arrangements apply to any one of over 300 private colleges across the nation. College-bound youth can attend any school on the continually expanding list of participating institutions and benefits may also be transferred to other family members.

Through the plan, parents purchase certificates to be used to pay future tuition costs. After their child is accepted at a member college, the certificate can be used to pay the percentage of tuition that was prepurchased. Future tuition increases will no longer be a concern. The colleges own the investment risk on the funds, and the funds grow tax-free. 

With mutual funds and other college savings options, many parents invest in stocks or other securities in hopes that the returns (excluding any tax liability) will ultimately enable them to meet their goals. There are concerns that the market will turn just as the funds are needed for college. Because the Independent 529 Plan guarantees a distinct tuition benefit at each member college, volatile investment markets present no risk. A year of tuition purchased today ensures that a student will get a year of tuition no matter how much tuition rises in the intervening years. The plan also assesses no sales, application, or maintenance fees to the purchaser.

Independent 529 Plan certificates are applicable to undergraduate tuition and mandatory fees. (Room and board and graduate-school tuition are not covered at this time.) In the event that a student decides not to attend a participating college, a refund adjusted for the investment performance of the program is available. For full details, visit www.independent529plan.org or call (888) 718-7878.