GRAND RAPIDS, Mich. -- The State of Michigan is offering a 100-dollar bonus for new Pay-As-You-Go contracts purchased during what has been declared by Gov. Gretchen Whitmer as "College Savings Month."
Michigan Education Trust executive director Diane Brewer said on West Michigan's Morning News you can avoid rising tuition rates by buying college credits at today's price through a prepaid savings program.
"Once you pay that credit-hour cost, you don't worry about how much tuitions go up between the time you bought it and the time your student uses it at college. Because the trust is making up the difference," Brewer said.
It is called the MET 529 prepaid tuition savings program. Here is a weblink for purchasing college credits.
Brewer said it used to be bought primarily by parents and guardians. But nowadays, more and more grandparents are purchasing the credits. And you don't have to be related to the student, either, to buy them.
"If an individual already has a MET for their student, you can add to a monthly payment, if they're making payments - if it wasn't a lump-sum payment. Or, say you wanted to purchase a semester for a niece or nephew. So, there's a lot of options," Brewer said.
The MET is transferrable to immediate family members, such as siblings, step-siblings, first cousins, et al.
"Your biggest bang for the buck is using these at a Michigan public institution," Brewer said. "However, we do have students at Michigan private institutions and at out-of-state institutions, and those attending trade schools."
The state uses a formula to convert credit hours into a refund that is equivalent to Michigan universities' amount.
"Down the road. In the year that student tells us they're going to a private college or going out of state. So, we set up an equivalent dollar value that we can push out to those institutions on behalf of those students," Brewer said.
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