With college prices continuing to increase, many parents question how they will pay future tuition costs. Rather than relying solely on education loans, MEFA encourages families to proactively start saving now through the U.Plan Prepaid Tuition Program to reduce future college expenses.
The U.Plan Prepaid Tuition Program helps tackle the uncertainty of future tuition increases with an innovative approach. The U.Plan allows families to lock in tomorrow’s tuition at today’s prices at nearly 70 participating colleges and universities in Massachusetts.
“The U.Plan is a powerful way to save for college while also protecting families against rising tuition costs,” said Thomas Graf, Executive Director of MEFA, which manages the U.Plan. “Massachusetts families should consider the U.Plan as part of their college savings strategy, as parents saving through the U.Plan value the program’s risk-free structure that keeps up with future tuition costs,” Graf added.
To lock in 2026-27 tuition rates, both existing and new U.Plan participants are advised to make deposits by the July 15th deadline. Opening an account and making deposits can be easily done any time at mefa.org/uplan.
How the U.Plan Works
To save through the U.Plan, families must open a U.Plan account, name a child beneficiary, and deposit funds at any time throughout the year. Each year on July 15th, contributions made over the previous 12 months are used to purchase Tuition Certificates. The Tuition Certificates represent a fixed percentage of tuition and mandatory fees at participating U.Plan colleges.
For example, $3,000 purchased in a 2026 U.Plan Tuition Certificate covers approximately 25% of 2026-27 tuition costs at state universities and will cover the same 25% in the future, regardless of how much tuition has increased. Saving early will likely result in significant savings, especially compared with borrowing to cover college costs.
Additional U.Plan benefits include:
- Earnings are exempt from Massachusetts and federal income tax.
- No need to choose a college when opening an account. Funds may be used at any participating college or university when the student enrolls.
- If the student attends a non-participating college or university, the full savings plus interest can be withdrawn with no penalties and used to pay those college costs.
- If the student decides not to attend college, the proceeds can be transferred to another student within the family, or the full savings plus interest withdrawn with no penalties.
Many U.Plan participants also save through MEFA’s U.Fund 529 College Investing Plan, which covers a wide range of college costs including tuition, fees, food, housing, books, and supplies.
Families interested in securing tuition at today’s rates are encouraged to establish a U.Plan account and save before the July 15th deadline. To learn more, visit mefa.org/uplan.
About MEFA
MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, chapter 15C. MEFA’s mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, competitive education loans, and expert guidance. All MEFA’s work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260708046961/en/
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