Beginning December 1, the Virginia Prepaid Education Program (known as VPEP) is offering open enrollment for new participants. The enrollment period, which lasts through March 31, 2010, means that VPEP contracts are available for newborns through 9th-graders, as long as the child or the account owner is a Virginia resident at the time the contract is purchased.
The contracts are priced according to the beneficiaries’ age and the number of contract years purchased. For example, a year of prepaid in-state tuition and mandatory fees for a four-year public college for a newborn will cost $11,878. For high school freshmen, the lump-sum payment for one year is $11,083. VPEP contract benefits may also be used toward tuition and fees at most technical schools and public and private universities worldwide.
This year marks the first time for an increased state income tax deduction that makes Virginia taxpayers who save for higher education in any Virginia 529 program eligible for a tax deduction of up to $4,000 per account each year.
For more information, please visit the Virginia College Savings Plan website.