December 5, 2002

Michigan Education Trust (MET), Michigan's Section 529 prepaid tuition program, will welcome in 2003 by offering another eight-month enrollment period for those looking to pre-pay the costs of future college tuition. The MET Board of Directors voted unanimously to offer open enrollment between January 2, 2003, and August 30, 2003. To date, more than 67,000 MET contracts have been purchased with nearly 12,000 students currently using their contracts to attend college.

MET offers three contract options: Full Benefits, Limited Benefits, and Community College. Due to rising tuition costs at Michigan's four-year public colleges and universities the MET Board has authorized 10-percent increases in the Full and Limited Benefits contracts for the coming year. The cost for a one-year Full Benefits contract will be $6,063, with a Limited Benefits contract priced at $4,884 per year. The cost of MET's one year Community College contract will increase by 5.3 percent, to $1,730.

"Given the nation's current economic conditions, and double-digit tuition increases facing college-bound students, the board had no choice but to increase MET contract prices," said State Treasurer Douglas B. Roberts, who also chairs the MET Board. "Despite these increases, the Michigan Education Trust will continue to be a flexible, affordable plan for parents and grandparents who want to invest in a child's education."

Treasurer Roberts says, it is also important to note that purchasers of MET contracts qualify for a state income tax deduction (total contract price including enrollment fees) while earnings on contributions are tax exempt to beneficiaries, if used for qualified higher education expenses. The cost of monthly purchase contracts range from $21 to $592, and students have nine years to completely utilize MET educational benefits.

The State of Michigan also offers the Michigan Education Savings Program (MESP), which allows parents to establish a savings account for educational expenses. More information on MET and MESP is available on the Department of Treasury Web site under Education at: www.michigan.gov/treasury; or by calling 1-800-MET-4-KID or 1-877-861-MESP.