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Saving for College in Michigan

Saving for College in Michigan. WHAT’S NEW. New MET Marketing Campaign “Tomorrow’s Tuition . . . Set with MET” 2005 MET Enrollment - Sept. 1 to June 15 Discounted Processing Fee for Online Enrollment Contract Prices now through 12th Grade Monthly Purchase Option - 15 year duration

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Saving for College in Michigan

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  1. Saving for College in Michigan

  2. WHAT’S NEW • New MET Marketing Campaign “Tomorrow’s Tuition . . . Set with MET” • 2005 MET Enrollment - Sept. 1 to June 15 • Discounted Processing Fee for Online Enrollment • Contract Prices now through 12th Grade • Monthly Purchase Option - 15 year duration • Monthly Purchase Early Payment Discount

  3. WHAT’S NEW • MET Statute now allows termination or transfer after 1/2 way point (will need Board approval) • MESP Match Funds Approved for 2004-05 • MESP Account Owner can be a Trust • Net Contributions now deductible • Recapture provision modified • FIA will disregard 529 savings for public assistance eligibility

  4. MET Contract Options Three Types of Contracts: Full Benefits Limited Benefits Community College MESP Investment Options Three Investment Options: Managed Allocation 100% Equity Guaranteed

  5. Similarities • Benefits of Internal Revenue Code Section 529 • State & Federal Tax Exemption on Qualified WD’s • Purchase Contract/Open an Account for Any Child • State Income Tax Deduction for Contributions • Transfer Contracts/Accounts Among Siblings • Gift Tax Exemption • Payroll Deduction or ACH

  6. Differences • MET - Prepay Tuition & Mandatory Fees • MESP - Save for all Qualified Higher Education Expenses • MET - Pays Tuition & Mandatory Fees at MI Public Two or Four Year College (Refund amount Portable to attend MI private or Out-of-state college) • MESP - Can Be Used to Pay for Total Qualified Expenses at Any College in Country

  7. Differences (cont.) • MET - Prepay with Monthly Installments, Payroll Deduction, ACH or Lump Sum - Ignore Rising Tuition • MESP - Save as Much as $235,000. Deposit as Little as $25 ($15 if payroll deduction)

  8. Differences (cont.) • MET - Purchase for MI Child Newborn to 12th Grade, Allowed 9 Years to Use Contract • MESP - Open Account for Anyone; No Age Limit, No Residency Requirement • MET - Recognized as Student “Resource” for Financial Aid • MESP - Recognized as Parental Asset for Financial Aid

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