OT: MPACT program open to new enrolement this Fall?

[Seinfeld]

For those with children that have taken advantage of this, is there a downside to this program? It really seems like a no brainer...

- Locks in today's college tuition rates which continue to skyrocket year after year
- Contributions are Tax deductable for MS state taxes, earnings are tax deductable for Fed taxes
- Can be paid towards a MS university or essentially any out of state institution based on the equivalent rate of a MS university at that time
- Can be refunded if your child receives a scholarship of simply doesn't go to college

Seriously, what in the world would be the downside of doing this?

 

[8dog]

None. Its just whether you want to do this or a 529. I do a 529 in case my kid doesnt need it or doesnt go to college so i can get the benefit of appreciation and i dont lock myself into a payment. Plus i can use any state.

In this plan i think you just get your contributions back if you dont need it. Also in prepaid you have to use your state. Consider me a little scared of a plan that almost went broke

But either way they are great tools.

 

[johnson86-1]

Seriously, what in the world would be the downside of doing this?

The only downside I know of is that previously, you didn't really get your tuition locked until relatively late. Can't remember exactly but I think until your kid is maybe 15, they could simply shut it down and refund your money with the rate a savings account would have paid. I'm not aware of this actually happening to anybody, but it would suck to spend that money when your kid is a toddler, and in 10 years find out that not only is your tuition not locked in, you lost money after inflation is accounted for.

I didn't know that you could get a refund though. I thought once you paid for it, it was use it or lose it, with limited ability to transfer it to a non-sibling.

 

[rabiddawg]

We have been paying in since 2001 and 2003 for our kids. As previously stated, it almost went broke last year and they had to **** down new enrollment but hopefully they have that fixed now. Any preparations you make now to fund your children's education is good. I wish my parents would have. I wouldn't have had to carry so much debt after graduation. I vowed I wouldn't do that to my own kids.

What's even more incredible is the number of people that have children my age that aren't doing anything.

 

[patdog]

It's not use it or lose it. You can get your money out at any time. You just get a pitiful interest rate on it going back to the beginning of when you started contributing.

 

[seshomoru]

I use the 529 and plan to do two other things..

take an interest and make an effort in his education, and I will not be paying for him to play on 5 different "select" sports teams.

 

[coach66]

I did both for both my kids and I must say it is nice to know you have their

college covered. One less thing to worry about. I would put as much into that MACS 529 as you can spare. It costs a lot to go first class*.

 

[haildearoldstate]

No down side as far as I can tell. We have 9 more payments on our 17 y/o

and it'll be paid for. It's a huge piece of mind. He should be receiving some scholly monies as well so it's looking like we may get some monies back but I'm sure with the costs of the damn books these days that money will be eaten up pretty quickly.

 

[johnson86-1]

What's even more incredible is the number of people that have children my age that aren't doing anything.

Ehh, in-state tuition is pretty affordable in Mississippi. And if you can't do four years of university tuition, there are lots of scholarship/grant opportunities at community colleges. You get through JUCO and you might have to finance what, $16,000 for two years of undergraduate classes. It'd be better to plan ahead and save a little bit for years, but it's not exactly a huge obstacle if you wait until their in school. I'm guessing most people you know that aren't doing anything to save for their kids college would be much better off upping their retirement savings if they were going to carve out an extra five hundred dollars a month to save.

 

[coach66]

I smiled a little when you said getting money back because of scolly. My

daughter is on about 70% scholly and somehow we find a way to spend most of the planned MAC's money as well. Sororities and having a full social life are expensive but well worth it.

 

[Seinfeld]

If college costs continue to inflate at the annual rate of 6-7% that they have over the last decade, TD Ameritrade is telling me that it will cost my 3-year-old $113K to attend a public university for 4 years by the time that she's 18. I get the time value of money and all that stuff, but that's not exactly a minor obstacle for a lot of people. Especially families with multiple kids.

 

[patdog]

That $16,000 only pays tuition. Average cost of attendance at MSU is $21,670 per year.

 

[dawgman42]

Sororities and having a full social life are expensive but well worth it.

Derek Dunn agrees with this message.

 

[rabiddawg]

Most of them are spending it making sure they don't have more than a 2 year old car, making sure they have the latest model 4 wheeler/Polaris little car thingy, the most current Costas and a YETI for each SUV

 

[coach66]

Of course he does*

swagku

 

[jb1020]

the next "bubble" to bust is the education bubble.

just know.

 

[fishwater99]

I don't see one if your child goes to college.

I have MPACT for both of my children.
My 6 year old's is already paid for and I have 2 more years left on my 3 year old's.
I am also saving other money for them in Mutual Funds instead of a 529.
I just don't like all the restrictions on the 529 funds. Does anyone have any experience on spending 529 funds?

 

[coach66]

I was concerned about the restrictions as well but after speaking with MSU

finance guy he advised me to use the 529 for tuition, books, room and board etc. and let the Mpact and Scholly money build up as a credit in the students account that can be used as you wish.

 

[fishwater99]

I am pretty sure the MPACT money is for tuition only, they even pay the school for you each semester.

 

[coach66]

That's right but is there a rule that says you can't pay tuition with MACS money

if you so chose?

 

[patdog]

You can pay tuition with MACS money, but if you have both MPACT and MACS, you would never pay the tuition with MACS if your MPACT was fully funded.

 

[coach66]

Ok, you and fish obviously never colored outside the lines*

nmku

 

[fishwater99]

If you don't use MPACT for tuition you will get a lesser return on your money if it is refunded.

 

[coach66]

Your child will be setup with an account at MSU and the Mpact money just goes

straight into the child's account about a month after the semester starts. If you are all paid up at that point using MACS a credit balance will appear in your child's account.

 

[Rebels7]

"Enrtolement." Please fix that, man.

nm

 

[Rebels7]

And then I misspell the misspell...Irony.

 

[haildearoldstate]

Books have always been a racket. Even back when I was in school in the late

80's books were a rip off. Buy them full price, sell them back half price (rinse, lather, repeat). I'm not going to name names but some of the football and basketball players back then would steal books and backpacks laying about in various locations in the union. They would take the books back to the bookstore and sell them.

 

[fishwater99]

I was unaware of that, thanks for the information. I might want to start a 529 now...

 

[RocketDawg]

We expect nothing less from an OM scholar. **

You can fix it yourself by doing an edit, then click on "go advanced". That way you can edit the subject line.