Conference moira::parenting

    
    I had heard about this plan, but haven't looked into it in detail yet.
    My one big question is, what if my child doesn't want to go to one of
    the colleges participating, or go to college at all??? Do I get my
    money back plus a percentage over and above what I paid out or what??
    
    Patty

    Patty,
    
    Yes, if your child decides not to attend one of the schools you will
    get your money back plus some form of interest.
    
    I haven't received the paperwork yet (you receive an info packet 5-7
    business days after you make they take your address (be prepared for
    them to ask for you phone # and ss # (yup, right))), but I seem to
    recall that whatever amount you invest is tax deductible, however, if
    your take your money back you must pay taxes on it.
    
    Also, note that you must enroll by March 31 and an application does NOT
    come with the info packet, you have to call back and request one (I was
    told that they could not enclose one with the info).  So, if you are
    interested you need to act quickly.
    
    The phone number is 1-800-449-MEFA 

    
    I have heard this on the radio one day. But it didn't sound like
    the top schools (like WPI, MIT) are in this plan. Does anyone
    know for sure?
    
    
    
    Eva

    How do you go about the "investing" part?  Is it deducted from your
    check, or is that something you must arrange on your own?  Is there a
    limit as to how much you can contribute?  A minimum?  
    
    THANKS!
    Patty

	I spoke about this with my father this weekend (he's on
	the board of Trustees at Clark, so I figured he'd know).

	I know that Harvard is participating, and I'm pretty sure
	WPI is, too.

	To qualify for financial aid today, you'd need a family
	income of less than $70,000.  Assume that level tracks,
	so you can use it as a baseline.  If you're over that today,
	your kids probably won't qualify for FA when they are ready,
	therefore, it's a wise investment.

	It's tax-free, and if your child does not attend
	one of the 67(?) participating schools, you get back
	your money with some "interest" adjustment.

	Karen

    All the add says is 60 participating private and public schools, I'm
    anxious to see the list.
    
    Don't know how they handle the "investment" but there is a miniumum, I
    think it's $25/month and there is a maximum, which I believe is
    $3k/year.
    
    /Susan

    Is this plan only through Shawmut Bank?  Does anyone know if it will
    be continued after Fleet takes over Shawmut?

    Yes, WPI is on the list.
    
    FWIW - I didn't have to give my social security number.  I got
    the application packet three days after I called for it.

    I didn't give my ss# either, they asked for it and when I laughed the
    person said, "I guess the answer is no?"
    
    Glad to hear they are coming a little quicker than the quoted time.
    
    /Susan

    After reading this note, I called and they said ss# was
    optional right off the bat, before I could even answer.
    
    My question - I know these are MA colleges, and I can still
    be participate even if NH resident, but, doesn't college
    cost more if you are a non-resident?
    
    Does anyone know of a plan like this with NH colleges?  
    Other than the obvious, MIT, HARVARD, etc.. are there colleges
    as good in NH?   I never attended or learned a lot about this,
    but need to know this now I'm a parent.
    
    						cj *->

>    be participate even if NH resident, but, doesn't college
>    cost more if you are a non-resident?

Only the state supported schools.  I'm fairly sure Harvard and MIT
are private...

Charlie

    Is Tufts (school of veterinary medicine) on the list?
    
    Leslie

No graduate schools were on the list.  I think that
the plan is intended for tuition at undergraduate schools.

Tufts was one of the few schools not on the list.  Harvard,
BC, MIT, and Brandeis were also not on the list but may
decide to join at some later date.

Harold

    
    re. 13
    
    Thanks for the info. 
    
    Eva
    

    My husband went to register my daughter yesterday for the Plan and he
    found it more confusing and ended up not signing up until he did MORE
    reading.
    
    Some take-away points that he mentioned to me:
    
    - There is a $25 application fee.  
    - You must know the amount that you plan to contribute for the year
    - the bank gets 1% of that total upfront (as their fee).  Whether they 
      get 1% of your total every year is still unclear to us.
    - when you have decided on your contribution for the year, the bank
      then breaks that down into monthly installments and sends you a coupon
      book (just like a car loan).  He was not sure if you get penalized if 
      you miss a month's payment. 
    
    We thought we would be able to contribute to the fund when we wanted to 
    as long as we put in at least the $300/year.  But, once the bank
    determines your monthly installment, you can't change it in the middle
    of the year.  Still unsure if you can re-evaluate this monthly payment 
    after the end of each year or your locked in to that amount until your 
    child goes to college?
    
    We had heard about the U Plan on a radio talk show (before it was even
    announced on TV, etc).  My husband went the next day to the bank to get
    information and they haven't even had any literature on it yet.  We got
    put on mailing list and just received the material a couple of weeks
    ago.  They don't leave us much time to fully understand this plan and get
    registered by March 31st.
    
    Has anyone else gone to register yet?  Maybe the bank teller was not
    fully up to speed with the plan and was explaining correctly or in
    laymans terms.
    
    
    
    

    RE: .15 Where in the documentation does it say that the bank gets 1%?

    re: -1
    
    when my husband went to register yesterday, the bank person told him
    that they get the 1% - whether or not it says it in the literature, I'm
    not sure.
    
    

    Re:  -1.  In a court of law, the U-Plan package would be considered
    an offer.  My completed application forwarded to them would be
    considered acceptance.  My acceptance would be for the terms stated in 
    the U-Plan package.  If Shawmut did not behave per the terms in the
    package, then they would be in violation of the contract.
    
    I will have to finish reviewing the documentation as I have found no
    reference to the 1% you mention.
    
    Nancy
    

    re: .17
    
    The 1% fee is listed on Page 13 of the Offering Statement, and in the 
    Questions & Answers section of yellow summary booklet that comes with
    the package.
          
    "A Processing Fee of 1% of the Investment Amount will also be assessed
    for Investment Amounts allocable to each Enrollment Period."
    
    As I understand this it means you pay 1% of the amount of the Tuition
    Certificate for each certificate you buy.

               List of Participating Colleges and Universities
    
    American International College
    Amherst College
    Art Institite of Boston
    Assumption College
    Babson College
    Bay Path College
    Bay State College
    Berklee College of Music
    Berkshire Community College
    Boston University
    Bradford College
    Bridgewater State College
    Bristol Community College
    Bunker Hill Community College
    Cape Cod Community College
    Clark University
    College of Our Lady of the Elms
    College of the Holy Cross
    Eastern Nazarene College
    Endicott College
    Fitchburg State College
    Framingham State College
    Franklin Institue
    Gordon College
    Greenfield Community College
    Hampshire College
    Hebrew College
    Hellenic College
    Holyoke Community College
    Laboure' College
    Lasell College
    Massachusetts Bay Community College
    Massachusetts College of Art
    Massachusetts Maritime Academy
    Massasoit Community College
    Merrimack College
    Middlesex Community College
    Monserrat College of Art
    Mount Holyok College
    Mount Wachusett Community College
    Newbury College
    Nichols College
    North Adams State College
    North Shore Community College
    Northeastern University
    Northern Essex Community College
    Pine Manor College
    Quinsigamond Community College
    Regis College
    Roxbury Community College
    Salem State College
    Simmons College
    Smith College
    Springfield College
    Springfield Technical Community College
    Stonehill College
    Suffolk University
    University of Massachusetts at Amherst
    University of Massachusetts at Boston
    University of Massachusetts at Dartmouth
    University of Massachusetts at Lowell
    Wellesley College (subject to Board approval)
    Westfield State College
    Wheaton College
    Wheelock College
    Worcester Polytechnic Institue
    Worcester State College

                        More miscelleneous Information
    
    I went to the Shawmut Bank last week to pick up the U. Plan package.
    Here is a collection of miscelleneous info as contained in this
    package:
    
    The U. Plan is administered by the Massachusetts Educational Financing
    Authority (MEFA).  The plan is available Exclusively at Shawmut Bank,
    as the exclusive marketing and point of sale agent.
    
    The plan is available to both residents and non-residents of
    Massachusetts, but only Massachusetts schools participate in the
    program.
    
    The program allows you to purchase Tuition Certificates.  When you
    purchase a certificate you determine the amount that you want to buy
    ($300 minimum) and the year that the certificate will mature. There are
    penalties if you use the certificate in a year other than the
    maturity year.
    
    The certificate locks in a predetermined percentage of tuition.  Each
    school participating in the program has a different percentage, based
    on it's current tuition. Basically this means that a $1200 Tuition
    Certificate purchased now, will lock in 6.42% of the tuition at Boston
    University ($18,690 per year) or 60.24% of the tuition at Cape Cod
    Community College ($1,992 per year for residents), no matter how much
    this tuition changes between now and the year that the certificate
    matures.
    
    If you don't or can't use the certificate, you get your money back,
    plus interest (based on the Consumer Price Index) minus some fees and
    charges.
    
    When you sign up, you pay a $25 application fee and a processing fee of
    1% of the Tuition Certificate amount.  These fees are payable up front
    and must be included with your application.
    
    Also, when you sign up, you must specify the Beneficiary, ie: the name
    of the person who will be using the certificate.  This can be changed
    later for a fee.
    
    You can sign up by March 31 to either:
    	Make a lump sum purchase in 1995
    	Start saving for a 1996 purchase
    	Make a lump sum purchase for 1995 and start saving for 1996
    
    If you make installment payments, you get interest on your
    installments. However, there is a limit on the total amount of Tuition
    Certifcates that this program can support. If this limit is exceeded,
    there is no guarantee that you will be able to purchase a Certificate.
    
    
    I'm still not sure if this is right for me. There is so much to
    consider and such a short time to do so. Has anyone made the decision
    to participate?
    
    -Richard
    program

    
    I've seen in a couple of different newspapers Shawmut offering free
    Seminars on the U Plan.  My site (MRO) is also having one March 15th.

    Some of my questions have been cleared up with previous notes but not
    the question of after I register on what I want to buy and for 
    what years can I re-evaluate in future and change the amounts?  My
    other assumption is that each year tuition will rise/change, and
    my percentage of tuition cost will decrease/change, is that correct?
    
    
    Pat
    

    >Some of my questions have been cleared up with previous notes but not
    >the question of after I register on what I want to buy and for 
    >what years can I re-evaluate in future and change the amounts?  
    
    The information I received was not clear on this, but my conclusion is
    that you need to register and make all your decisions each year. 
    
    >My other assumption is that each year tuition will rise/change, and my
    >percentage of tuition cost will decrease/change, is that correct?
    
    Each year, the participating schools fix the percentage that the
    certificates will buy.  And yes, it will change.
    

    
    The Shawmut bank in Clinton is holding a seminar on Wednesday night.
    
    You need to register if you want to attend.  I don't have the number
    with me but I'm sure you could call the main number at the bank.
    
    Kirsten
    

	Has anyone heard of other seminars in Worcester County ?

	Karen

    I live in Pennsylvania and our state colleges have a program where you
    can purchase tuition credits for future college education.  The
    information I got shows that you can purchase credits for 65 different
    colleges in the state or in a general category (State System of Higher
    Education, State-Related Universities or Community College).  You pay
    for credits at today's prices and the value of those credits increases
    as the tuition rates go up.  If the child decides not to attend the
    college you chose (or the category), the credits can get converted to
    cash.  If the child receives a scholorship, the credits can be used for
    room and board or other expenses.
    
    You don't get interest, per se, but if you cash in your credits, you
    get the value at the time of the refund.  (It's not supposed to be used
    as a cash savings plan).
    
    Oh, the program is sponsored by the Commonwealth of Pennsylvania, not a
    private party (like an insurance company).
    
    I'm looking for comments from folks about this program. 
    
    Thanks,
    cheryl
    
    (fwiw, we are talking about a current 8 year old and a "soon to be
    born" child)
    

    Moderator, thanks for moving my previous note.  I did not see anything
    in my PA literature about a 1% fee like in Mass.  It's a question on my
    list now. 
    
    Has anyone actually started using this program?  I guess it's pretty
    new in Mass too, so not too many folks have actually cashed in on it
    yet.
    
    I'm sceptical but am tired of paying taxes on interest every year on
    money that I am not going to use for 20 years.  
    
    thanks for any comments, questions I should ask, and other suggestions.
    
    cheryl