State’s 529 Prepaid Tuition Purchasers Eligible to
Meet Year-End Tax Deduction Deadline
LANSING, Mich. -- The Michigan Education Trust (MET) Board of Directors announced Wednesday that the 529 prepaid tuition program’s contract purchase prices will remain unchanged in order to help families strained financially by the COVID-19 pandemic.“Saving for college is extremely challenging during these extraordinary times. Holding contract prices steady through at least next September will, we hope, be a big help to Michigan families,” said Diane Brewer, MET’s new executive director.
That means, for example, that until Sept. 30, 2021, purchasers of Pay-As-You-Go contracts will continue to pay $612 for a credit hour of tuition under a full-benefits contract for tuition and mandatory fees at any Michigan public university; $508 per credit hour under a limited-benefits contract, which covers up to 105 percent of the weighted average tuition of Michigan’s public four-year universities; and $125 per credit hour for a community college contract.
Additionally, MET is offering a $100 matching grant on contracts purchased for new beneficiaries during December. Eligibility and rules are posted at SETwithMET.com.
MET also sells contracts through lump-sum and monthly purchase plans that require minimum purchases of a semester’s worth of tuition.
The MET board also announced it will reopen enrollment on Dec. 1. As it does every year, MET closed enrollment on Sept. 30 in order to review and adjust pricing.
The Dec. 1 reopening allows those who buy or contribute to a contract by the end of the year to qualify for a deduction on their Michigan tax return. MET contract holders are eligible for a state deduction for purchases or contributions made by Dec. 31 each year.
MET, which is administered by the Michigan Department of Treasury, is a Section 529 prepaid college tuition programs that locks future tuition at any of the state’s public universities and colleges at today’s rates. Additionally, funds can be directed to out-of-state colleges as well as Michigan private colleges and universities. MET benefits are used to pay tuition and mandatory fees.
More information about MET is available at SETwithMET.com or 800-MET-4-KID.
