Two Michigan families will have extra reason to observe College Savings Month in September, when the Michigan Education Trust (MET) wraps up its How We MET Sweepstakes.
On Sept. 18, MET will randomly draw two winners of $3,000 Pay-As-You-Go MET prepaid tuition contracts, concluding the $30,000 giveaway that began with monthly drawings in January.
“In celebration of our 30th anniversary as the nation’s first prepaid tuition program, we’ve been awarding $3,000 each month throughout 2018 to one lucky Michigan family,” said MET Executive Director Robin Lott. “In September, in recognition of College Savings Month, we’re going to double the fun and award a total of $6,000.”
The sweepstakes is open to Michigan residents age 18 and older who will have children ages 0-17 as of Sept. 30, 2018. They have until Sept. 17 to enter for next month’s drawings at MET4College.com.
Gov. Rick Snyder has proclaimed September as College Savings Month in Michigan in an effort to increase awareness about the importance of saving for college.
“With college tuition rates going higher every fall, families are urged to begin saving for their child’s higher education as soon as possible,” Lott said. “I always tell parents to put aside however much they can afford because even small contributions add up over time.”
Although an overwhelming majority of Michigan parents view a college education as an investment in their child’s future, only about half are currently saving for higher education expenses, according to the results of a first-of-its-kind survey released by MET earlier this year.
Washington University’s Center for Social Development says that having savings over a period of years may raise young students’ educational expectations in addition to their academic effort and achievement. Youth who have education-related savings are almost four times more likely to attend a four-year college than those with no account. For example, more than 96 percent of high school graduates with MET contracts have attended a college or university.
With MET, families can buy future tuition at today’s prices. MET’s Pay-As-You-Go option allows purchasers to buy prepaid tuition in credit hour increments rather than on a semester basis, which requires a greater upfront investment. Pay-As-You-Go contract holders can purchase additional prepaid tuition with contributions of as little as $25.
MET also sells tuition in semester increments through lump sum and monthly purchase plans.
MET is one of three 529 college savings plans administered by the Michigan Department of Treasury. The others are the Michigan Education Savings Program and the MI 529 Advisor Plan, each of which allows investors to grow their savings tax-free in various investment options.
All three 529 plans also offer Michigan income tax deductions on contributions in the year they’re made.
Lott is reminding potential contract purchasers that the current MET enrollment period ends on Sept. 30. The plan will again begin selling prepaid tuition in December.
More information about MET is available at SETwithMET.com or 800-MET-4-KID.
