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A beautiful gift from my parents today
Old 06-21-2019, 08:32 PM   #1
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A beautiful gift from my parents today

My parents told us today that they will be purchasing a 2yr prepaid college plan for each of our 3 kids. They are still sub 10yrs old but it was such exciting news. We haven’t had any windfalls and some setbacks along our FI journey in the past few years so this is such a surprise and blessing.
We do have 529’s but they are minimally funded and we really had no formal plan for how to fund college.
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Old 06-21-2019, 08:42 PM   #2
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How do you prepay for 2 years of college for 10 year olds? I don't get it.
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Old 06-21-2019, 08:57 PM   #3
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The state offers a plan for covering in state tuition for children. It’s pro-rated based on age. U can pay a monthly amount till they are 18 or upfront.
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Old 06-21-2019, 09:11 PM   #4
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Yes, we have the same thing in Michigan. It’s called MET or Michigan Education Trust. It provides a lot of flexibility in prepaying education. For example, I can buy a prepaid plan for my 13 year old grandson for a lump sum for about $80K to have full tuition paid at an in State university. There are also monthly plans and two year plans versus four year plans . . .
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Old 06-21-2019, 10:10 PM   #5
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The state offers a plan for covering in state tuition for children. It’s pro-rated based on age. U can pay a monthly amount till they are 18 or upfront.
What happens if the child's best choice is out of state? Of if the child choses not to attend college? Or joins the military?
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Old 06-21-2019, 10:29 PM   #6
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What happens if the child's best choice is out of state? Of if the child choses not to attend college? Or joins the military?


All good questions but it is a gift at no cost to us and I don’t intend to question their reasons for choosing what they did. I’m grateful for their generosity and having the foresight to plan ahead.
These are reasons we chose to set up a 529 but haven’t had the ability to fund it as well as we intended.
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Old 06-21-2019, 10:31 PM   #7
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All good questions but it is a gift at no cost to us and I don’t intend to question their reasons for choosing what they did. I’m grateful for their generosity and having the foresight to plan ahead.
These are reasons we chose to set up a 529 but haven’t had the ability to fund it as well as we intended.
+1. It sounds like a wonderful gift.
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Old 06-22-2019, 04:48 AM   #8
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My parents told us today that they will be purchasing a 2yr prepaid college plan for each of our 3 kids. They are still sub 10yrs old but it was such exciting news. We haven’t had any windfalls and some setbacks along our FI journey in the past few years so this is such a surprise and blessing.
We do have 529’s but they are minimally funded and we really had no formal plan for how to fund college.
That is indeed a beautiful gift. Your parents are very thoughtful people.
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Old 06-22-2019, 05:09 AM   #9
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Very lovely gesture.

I looked at the website for what I believe to be op’s state and it seems all the issues raised are addressed in the plan so the money will not be lost
https://www.myfloridaprepaid.com/prepaid-plans/
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Old 06-22-2019, 06:04 AM   #10
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Very lovely gesture.

I looked at the website for what I believe to be op’s state and it seems all the issues raised are addressed in the plan so the money will not be lost
https://www.myfloridaprepaid.com/prepaid-plans/
Yes, but if the student doesn't attend college and there is no qualified family member to transfer the benefit to, you get a refund but no interest. That would be us... DD had already completed college when DS decided not to attend college.

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What if the Beneficiary does not go to college?
If the student does not use their Florida Prepaid Plan benefits, you may transfer the benefits to another qualified family member or you may request a refund. Your refund will be equal to the payments that you have made, less any previous refunds, and a fee of up to $50 per plan or 50% of the amount paid to the board, whichever is less, may be assessed upon termination of the plan.
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Old 06-22-2019, 06:16 AM   #11
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That is great regardless of the terms what a wonderful gift.
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Old 06-22-2019, 06:37 AM   #12
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Originally Posted by Beer-man View Post
My parents told us today that they will be purchasing a 2yr prepaid college plan for each of our 3 kids. They are still sub 10yrs old but it was such exciting news. We haven’t had any windfalls and some setbacks along our FI journey in the past few years so this is such a surprise and blessing.
We do have 529’s but they are minimally funded and we really had no formal plan for how to fund college.
Your parents are wonderful people. What a loving gesture!
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Old 06-22-2019, 06:48 AM   #13
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Yes, we have the same thing in Michigan. It’s called MET or Michigan Education Trust. It provides a lot of flexibility in prepaying education. For example, I can buy a prepaid plan for my 13 year old grandson for a lump sum for about $80K to have full tuition paid at an in State university. There are also monthly plans and two year plans versus four year plans . . .
I picked the alternate MESP (Mich Educational Savings Program) 529 thinking that investments would outperform and that the youngsters might prefer out of state. They did stay in Michigan for college but I guess I could have offered them the alternative of paid instate tuition or partial payment of out of state + student loans.
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Old 06-22-2019, 06:52 AM   #14
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Nothing better than the gift of an education!
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Old 06-22-2019, 06:58 AM   #15
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That is great regardless of the terms what a wonderful gift.
Agree... just want to make sure OP understands possible outcomes.
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Old 06-22-2019, 07:08 AM   #16
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Yes, but if the student doesn't attend college and there is no qualified family member to transfer the benefit to, you get a refund but no interest. That would be us... DD had already completed college when DS decided not to attend college.
+1

Although I agree it's a wonderful gesture, I think unrestricted gifts are much better.
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Old 06-22-2019, 07:10 AM   #17
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Education is the gift that keeps on giving! Your parents are awesome!
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Old 06-22-2019, 07:10 AM   #18
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That's awesome! What a great gift!
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Old 06-22-2019, 07:18 AM   #19
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We gave each of our five grandchildren a two-year prepaid tuition plan on their first birthdays. One unintended benefit was that it motivated their parents to start saving to pay for the other two years.
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Old 06-22-2019, 07:36 AM   #20
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My dad funded his grandkids’ post-high school education as well. Ours only partially. My sister’s kids, 100%. Great gift. Better than direct money. My dad did not live to see any of his grandkids graduate high school, however.
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