College Savings

mary811

I wanted to start  college savings for DS, which one do you use/recommend?  I saw there are a couple of choices out there for MI babies. 

beewltched

The ILs set up a 529 and put money into it for him.  She recently just told me something about he would have to use it for a university because a community college wouldnt "count".  So just make sure you understand what situations your lo would be able to use it for.  We just have been saving money for him in a regular account for now until we decide what to do with it.  I'm interested to see the other answers

KBabySmiles

This scares me.

I know Sheila and Renee both have their acts together, and I'm sure would be able to help!

littlemermaid

We have the MESP 529

ballerina06

We opened up a MET contract for Gabriel.  It's way too long to type on here, but if you have specific questions just shoot me a message and I can go into more details.  It was the best decision for us.

broncoalum97

DH set up a 529 account at Fidelity for both the kids.  So when we get money, we put it in there instead of their savings account.  We've even told the grandparents, if you want to give them gifts, give them money for their college fund. 

JandR07

Lexi has money in her savings acct and in some stock options.

MrsRenee

We have a 529 for both boys.  There's some tax benefits if you invest in the MI plan, so most people stick with the state they live in.  We ended up going with Kansas' plan- I liked their portfolio and long term performance better.  The accounts are tied to the market, so it has similar ups and downs like a 401K.  Because of their age, they're set up for aggressive growth right now.  As they get older and closer to college age, they account will become more and more conservative.

In addition to a univeristy, the money can be used for community college as well as vocational school.  What's nice is the money can also be used for things like textbooks and room and board.  Even if they decided to live off campus, you can use some money to cover that.  Then if the boys happen to get a scholarship, you can remove money out of the account equal to the scholarship.  The money is subject to tax, but there's no penalty.  So you don't have to worry about losing the money if they happen to get a full-ride (wouldn't that be nice!!)

BC&MM

MrsRenee:

We have a 529 for both boys.  There's some tax benefits if you invest in the MI plan, so most people stick with the state they live in.  We ended up going with Kansas' plan- I liked their portfolio and long term performance better.  The accounts are tied to the market, so it has similar ups and downs like a 401K.  Because of their age, they're set up for aggressive growth right now.  As they get older and closer to college age, they account will become more and more conservative.

In addition to a univeristy, the money can be used for community college as well as vocational school.  What's nice is the money can also be used for things like textbooks and room and board.  Even if they decided to live off campus, you can use some money to cover that.  Then if the boys happen to get a scholarship, you can remove money out of the account equal to the scholarship.  The money is subject to tax, but there's no penalty.  So you don't have to worry about losing the money if they happen to get a full-ride (wouldn't that be nice!!)

We did this. I didn't want to take the risk with MET, if my child goes to a different college than what is covered.

ballerina06

BC&MM:

MrsRenee:

We have a 529 for both boys.  There's some tax benefits if you invest in the MI plan, so most people stick with the state they live in.  We ended up going with Kansas' plan- I liked their portfolio and long term performance better.  The accounts are tied to the market, so it has similar ups and downs like a 401K.  Because of their age, they're set up for aggressive growth right now.  As they get older and closer to college age, they account will become more and more conservative.

In addition to a univeristy, the money can be used for community college as well as vocational school.  What's nice is the money can also be used for things like textbooks and room and board.  Even if they decided to live off campus, you can use some money to cover that.  Then if the boys happen to get a scholarship, you can remove money out of the account equal to the scholarship.  The money is subject to tax, but there's no penalty.  So you don't have to worry about losing the money if they happen to get a full-ride (wouldn't that be nice!!)

We did this. I didn't want to take the risk with MET, if my child goes to a different college than what is covered.

You have some wrong information there.  There are 3 types of contracts with the MET: Full Benefits, Limited Benefits, and Community College.  With the Full Benefits the contract states: The University Full Benefits Plan Contract provides in-state tuition and mandatory fees at any Michigan public university or in-district or out-of-district (as defined in the contract) tuition and mandatory fees at Michigan public community colleges up to the number of credit hours required for a standard four-year undergraduate baccalaureate degree (usually 120 semester credit hours). Individuals may purchase 1, 2, 3, or 4 years of tuition under this contract, and MET will pay for 30, 60, 90, or 120 credit hours, respectively.

If your child chooses to go out of state, you can redesignate to another family member just like with a 529 OR you can get your $ back (meaning the amount you put in).  Believe me, I was on the phone with representatives for hours trying to make a decision.

Not to mention, if your child gets a full scholarship you can use the MET for room & board.  You have the university bill the MET and then they pay the bill for R&B.

BC&MM

ballerina06:

BC&MM:

MrsRenee:

We have a 529 for both boys.  There's some tax benefits if you invest in the MI plan, so most people stick with the state they live in.  We ended up going with Kansas' plan- I liked their portfolio and long term performance better.  The accounts are tied to the market, so it has similar ups and downs like a 401K.  Because of their age, they're set up for aggressive growth right now.  As they get older and closer to college age, they account will become more and more conservative.

In addition to a univeristy, the money can be used for community college as well as vocational school.  What's nice is the money can also be used for things like textbooks and room and board.  Even if they decided to live off campus, you can use some money to cover that.  Then if the boys happen to get a scholarship, you can remove money out of the account equal to the scholarship.  The money is subject to tax, but there's no penalty.  So you don't have to worry about losing the money if they happen to get a full-ride (wouldn't that be nice!!)

We did this. I didn't want to take the risk with MET, if my child goes to a different college than what is covered.

You have some wrong information there.  There are 3 types of contracts with the MET: Full Benefits, Limited Benefits, and Community College.  With the Full Benefits the contract states: The University Full Benefits Plan Contract provides in-state tuition and mandatory fees at any Michigan public university or in-district or out-of-district (as defined in the contract) tuition and mandatory fees at Michigan public community colleges up to the number of credit hours required for a standard four-year undergraduate baccalaureate degree (usually 120 semester credit hours). Individuals may purchase 1, 2, 3, or 4 years of tuition under this contract, and MET will pay for 30, 60, 90, or 120 credit hours, respectively.

If your child chooses to go out of state, you can redesignate to another family member just like with a 529 OR you can get your $ back (meaning the amount you put in).  Believe me, I was on the phone with representatives for hours trying to make a decision.

Not to mention, if your child gets a full scholarship you can use the MET for room & board.  You have the university bill the MET and then they pay the bill for R&B.

I hope you are right, because my Mom has 4 friends that are out alot of money because they chose to go out of state for college. They are the last kids in the family. Right now a few of them are trying to transfer it to realtive's so someone can use this. Unless they have changes things in the last couple years.

We weren't willing to take the risk on this.

firewife9278

ballerina06:

We opened up a MET contract for Gabriel.  It's way too long to type on here, but if you have specific questions just shoot me a message and I can go into more details.  It was the best decision for us.

My brother and I both went to college on MET contracts. My parents have said they will purchase METs for any/all of their grandchildren as well. (saves me from having to think about it when the time comes!)

KBabySmiles

BC&MM:

I hope you are right, because my Mom has 4 friends that are out alot of money because they chose to go out of state for college. They are the last kids in the family. Right now a few of them are trying to transfer it to realtive's so someone can use this. Unless they have changes things in the last couple years.

We weren't willing to take the risk on this.

My advice to you would be to do your own research before making a decision. Just because you know someone who knows someone who had a bad experience doesn't mean that everyone will. There are lots of different MET plans. Until you have done your own research don't give advice to other people about what plans do or don't include. It's not 'taking a risk' if you take the time to call a representative and really look at the options.