LANSING — As a new mother, Michigan Treasurer Rachael Eubanks followed her own department’s advice Wednesday when it comes to education savings.
Eubanks, who gave birth late last year to a daughter, joined other parents, loved ones and college savers at a free drop-in informational session at the Impression 5 Science Center in Lansing. It was hosted by the Michigan Department of Treasury — the agency Eubanks oversees — to bring awareness to college savings plans.
“I believe in these programs not just in my professional capacity as Michigan’s Treasurer, but as a new mom who wants to ensure her child’s educational future is secure,” Eubanks (left) said. “I hope other newly minted parents and loved ones of young Michiganders will do the same – it's never too late to start saving.”
Investing in the Michigan Education Trust (MET) or the Michigan Education Savings Program (MESP) provides considerable value by providing tax advantages and investment returns over time. Both programs offer a State of Michigan tax deduction on contributions. In addition, funds used for qualified higher education expenses may be exempt from federal and state income taxes.
“There are few things more impactful or more loving than setting up our children for success by building a financial foundation for them to achieve their dreams,” Eubanks said.
The event was one of a series held periodically throughout the state to provide attendees the opportunity to purchase a MET contract and open an MESP account on-site. MET typically contributes $150 toward each new prepaid tuition contract purchased at such sessions. Click here for rules and eligibility.
MET also offer one-on-one consultation sessions for those unable to attend one of the events. More information about MET can be found at SETwithMET.com or by calling 800-MET-4-KID.
Representatives from MET and MESP are available at the events to discuss the features and benefits of each plan and offer tips to parents, grandparents and others on saving for college.
“The prospect of saving for college can be daunting for parents as they work to balance all their immediate needs throughout the year,” said Diane Brewer, executive director of MET. “That’s why we’re providing a one-stop shopping event for families to easily gather information in a low-key, no-pressure environment.”
About MET
MET is Michigan’s Section 529 prepaid tuition program that locks future tuition at any of the state’s public universities and colleges at today’s rates. The total contract price is eligible for a state tax deduction. Earnings are tax-exempt if used for qualified higher education expenses. MET contracts are portable and MET funds can be used to pay out-of-state and Michigan private college and university tuition. MET credits can also be transferred to other eligible family members.
About MESP
MESP is Michigan’s direct-sold Section 529 college savings plan that offers families various investment options. It also provides Michigan taxpayers a state income tax deduction on contributions and potential tax-free growth on any earnings if account proceeds are used to pay for qualified higher education expenses. MESP can be used at any eligible college, university or trade school in the nation and some abroad. Qualified higher education expenses include tuition, fees, room, board, books, equipment and supplies required for enrollment. Limitations apply. See the MESP Disclosure Booklet for details.
