Enrollment in state prepaid college tuition plan is booming, on track to top 50,000 by March 31

OLYMPIA – Enrollment in the state’s prepaid college tuition plan is booming, and state officials predict the total number of accounts will reach 50,000 by the end of March. New accounts are up 15 percent over last year, with less than one month until the March 31 enrollment deadline, according to Betty Lochner, director of Washington’s Guaranteed Education Tuition Program, known as GET. The program’s total account value recently topped $500 million, she said. “No other investment vehicle can guarantee that your money will keep pace with rising tuition costs,” Lochner said. “With college tuition increasing nearly 40 percent over the past four years, GET is a very attractive investment for many families.” A major selling point for GET is that the State of Washington guarantees that the money families set aside for college will keep pace with tuition increases at state colleges and universities. The Legislature and governor established the state program in 1998 to encourage Washington families to save for future college costs. Last year, families opened more than 8,000 new accounts, making GET the fastest-growing prepaid tuition plan in the nation. GET works on a unit system, with one hundred units equal to one year of tuition and mandatory fees at the most expensive public university in Washington. Families can buy up to 500 units – the equivalent of five years of college tuition – for use in the future. Although the value of GET units is tied to public undergraduate education, students may use their GET accounts at more than 35,000 public and private colleges, universities, and job training schools in the country. If the student decides not to go to college, the funds can be transferred to a family member, or the person who opened the account can request a refund. Anyone – parents, grandparents, or friends – can contribute to a student’s account. And if money is left over after paying tuition, families can use the reminder to pay for books, room and board, and other qualified college costs. GET also offers significant tax benefits. Under federal tax law, GET accounts grow tax-free, and all withdrawals are tax-exempt as long as the money is used for tuition, room and board, and other qualified college-related expenses. Enrollment at the current $61 unit price will end March 31. Lochner said she expects the unit price to be raised in May and again in September, when the new enrollment year begins. For more information about Washington’s Guaranteed Education Tuition Program, go online at www.get.wa.gov or call 1-877-438-8848 (toll-free).