By Wendy B. Dore, Special to JTNews
Like most Jewish
families, our childrens education is a very high priority
in our financial planning. Almost as soon as they were born,
we began setting aside funds to contribute toward their
college expenses.
The cost of
college, however, has risen faster than their savings could
grow, outpacing the rate of inflation on a regular basis.
The cost of an in-state four-year college has increased 130
percent in the last 12 years.
Even with the
dot-com boom factored in, unless one was a major Microsoft
investor, or had lucked into other investments, earning an
after-tax return that was big enough to fund a college
education was tough. And with the decrease in investment
values in the last few years, many of us have had reality
checks.
Thats why our
family invested for our sons college in Washingtons
Guaranteed Education Tuition, or GET, program. GET is
Washingtons IRS Section 529 Prepaid Tuition Plan.
GET allowed us to
pre-purchase units of tuition several years ago, at the unit
price in effect at that time, and use them now, at no
additional cost. This means if you purchase one years worth
of tuition units today, you will still have one year of
tuition when the student enters college, no matter how much
tuition has increased.
The value of GET
units grows tax-free if used for college, and the value is
100 percent guaranteed by the State of Washington to keep
pace with the rapidly rising cost of college. Just since we
bought our sons units, tuition has increased nearly 40
percent. That means that this portion of his college fund
has grown nearly 40 percent, tax-free, in three-and-a-half
years. I dont know of many other investments that have
performed that well in recent years. If the student does not
attend college or receives scholarships, the funds are
refundable.
In addition,
Washingtons GET units can be used at over 35,000 colleges,
universities, technical or trade schools across the country.
Our son is attending college this year on the East Coast
using his GET units. With GET, the cost of his attending an
out-of-state school is closer to the cost if he had chosen
an in-state school.
That was
important to us. We wanted our son to have as much choice as
possible when he selected a college.
GET units can be
purchased for any Washington State resident and can be
purchased either in a lump sum or over time on a monthly
payment contract, providing enough flexibility to meet
almost any budget.
Anyone can
contribute to a GET account. Grandparents, other relatives
or friends can open or contribute to a GET account for any
student. GET accounts can be opened for students of any age,
from newborn to adult. GET units make great Hanukkah gifts
(or birthdays, graduations, etc.) It can be the gift that
really does keep on giving throughout a childs lifetime.
And one thing you
always know the cost of college will continue to rise.
Currently, it costs about $69,000 to attend one of our
in-state research universities for four years. It is
expected that in 18 years (when todays infants will begin
college) it could be as much as $200,000, if one assumes an
annual increase of 7 percent.
One hundred GET
units are equal to one year of tuition and state-mandated
fees at Washingtons most expensive public university. If
the student attends an out-of-state or private school, or a
technical/trade school, the value of the units in Washington
can be applied to the cost. Any difference is the
responsibility of the student. You may purchase as few as
one or up to 500 total units per student.
If the student
attends a community or regional school, any excess units can
be applied toward room and board, books or other qualified
educational expenses.
Our family is
glad we have GET units for our son. If you are interested,
dont delay. GETs annual enrollment period of September 15
through March 31 is open now.
To get more
information, simply visit the GET Web site at www.get.wa.gov,
or call 1-877-438-8848. But act now the unit price is now
$61, but it will increase for the next enrollment period.
GET is a great
way to ensure peace of mind that you have provided for your
childrens college expenses.
In addition to being a happy GET account owner Wendy Dore, is associated with the GET Program.