Michigan Education Trust aims to jump-start college savings through $529 giveaway

As part of a broader campaign to highlight the importance of saving for higher education, the Michigan Education Trust (MET) announced today that it will award $529 toward a MET contract through a new sweepstakes giveaway.

The state’s Section 529 prepaid tuition plan is unveiling its Celebrate 529 Day Sweepstakes in conjunction with National 529 College Savings Day – May 29, or 5/29 – a day set aside annually to encourage families to meet their college savings goals.

“The sweepstakes is a fun way to draw attention to a serious issue,” said Robin Lott, MET executive director. “As tuition costs continue to rise, it’s becoming even more beneficial for families to save as much as they can as soon as they can to help fund a future college education.”

In addition to the sweepstakes, MET is also observing 529 Day by waiving the normal $25 processing fee for those who purchase a new contract online from May 25 through June 1. Use coupon code MET529DAY to waive the fee during online enrollment.

MET will award the $529 sweepstakes prize to the holder of a new or existing Pay-As-You-Go contract, an option that MET introduced in December. Pay-As-You-Go allows purchasers to buy contracts by credit hours rather than in semester increments, lowering the initial cost of establishing a MET contract, which might prove a hurdle for some families.

Another key feature of the option is that it leaves the contract open to future contributions, as opposed to a regular lump sum purchase that is closed and cannot be added to in the future. Once the initial credit hour is purchased, contributions can be made at any time in increments as low as $25 and friends and family members can contribute to the contract.

Participants must enter the sweepstakes drawing on the MET website, www.setwithmet.com, by 11:59 p.m. May 29.

MET will randomly choose the winner on or about May 30, then notify the winner by phone or email.

“The Celebrate 529 Day Sweepstakes is representative of MET’s overriding goal: putting a college education within the reach of as many people as possible,” Lott said. “Studies have consistently shown that a college education is one of the best investments available, based on the degree holder’s future earnings potential.”

The importance of a dedicated college savings plan is further highlighted by tuition trends, she said.

According to the College Board, the average published tuition and fee price of a full-time year at public four-year institutions nationwide was 40 percent higher, after adjusting for inflation, in 2015-16 than it was in 2005-06. At private nonprofit four-year institutions, the average published price was 29 percent higher than it was a decade ago.

May 29 is recognized as National 529 College Savings Day because MET and other state-administered college savings programs are known as 529 plans, named after the section of the Internal Revenue Code that allowed for their creation.

A 529 plan is a tax-advantaged investment vehicle designed to encourage saving for the future higher education expenses of a designated beneficiary.

MET, for example, offers Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on earnings if account proceeds are used to pay for qualified higher education expenses.

More information about MET is available at www.setwithmet.com or 800-MET-4-KID.

About MET

MET is Michigan's Section 529 prepaid tuition program that locks future tuition at any of the state’s public universities and colleges at today’s rates. The total contract price is eligible for a state tax deduction and earnings are tax-exempt if used for qualified higher education expenses. MET contracts are portable to out-of-state and Michigan private colleges and universities, and may be transferred to other eligible family members. More than 96 percent of high school graduates with MET contracts have attended a college or university.