Friday, September 26, 2003
Contact: Brad Lyons, Director of Communications
(314) 991-3000 - blyons@dhedisciples.org

The Independent 529 Plan includes more than 200 private colleges across the country. Participating Disciples institutions are Culver-Stockton College, Drury University, Hiram College, and Texas Christian University. More institutions may join in coming years.

The Independent 529 Plan is a prepaid tuition plan sponsored by more than 200 private colleges across the country. Every member college offers a certificate discount - meaning prepaid tuition is actually less expensive than what students attending college now are paying.

In addition, the amount of pre-purchased tuition won't change no matter what happens to the stock market or college tuitions rates. Prepaid tuition will be valid at any participating college once the student enrolls.

"The most common misconception about attending a private college is that the average family cannot afford it," says DHE President Dennis Landon. "Private colleges are much more affordable than most people think, and tuition at Disciples colleges average 15 percent less than other private colleges. Room and board is less expensive, too."

"Disciples colleges also provide financial aid to 80 percent of students, and several schools offer financial aid opportunities specifically for members of the Christian Church (Disciples of Christ), regional youth leaders, and children of ministers," Landon said. "Add in savings like the Independent 529 Plan, and it becomes easier to afford a Disciples education."

The Independent 529 Plan is very flexible in how it can be started and used for educational purposes.

Certificate owners can open an account free with as little as $25. At least $500 must be contributed within the first two years of the initial purchase date. The maximum contribution is $137,500 per beneficiary, which would be enough to pay for approximately five years' tuition and fees are participating institutions.

Beneficiaries are not required to choose a college until it's time to enroll, and funds can be used for other private and public colleges not affiliated with the plan. If a student chooses another college or university, the contributions will be refunded and must be used within a year to pay for college expenses at non-member institutions or the gains will be subject to taxes.

Other features of the Plan include:

• No fees of any kind to the consumer.
• The number of participating colleges and universities may increase over time.
• The Independent 529 Plan offers the same federal tax benefits as any 529 prepaid tuition plan or state-sponsored 529 plan. Contributions are made on an after-tax basis and any increase in value realized when a tuition is redeemed at a member college will be free of federal and state taxes. However, a sunset provision in the current tax law calls for the tax-free features of all 529 plans to end in 2011. Future changes in the law may create adverse tax consequences, or lead to termination of the Plan.
• The tuition certificates also can be transferred to a wide range of relatives of the beneficiary or the adjusted value of the certificates can be rolled over into another 529 Plan without penalty.