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Michigan Education Trust
The Michigan Education Trust prepaid tuition program offers several options to the Michigan family to lock in tuition at Michigan public institutions. What makes this program different than most is that contributions are irrevocable.
- Program typePrepaid contract
- Enrollment periodThe Enrollment Period to purchase MET contracts is December 1, 2018 - September 30, 2019.
- State agencyMET Board of Directors and Department of Treasury
- Tax deduction
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This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
State residency requirements:The beneficiary must be a Michigan resident at the time of program enrollment.
Who can be a participant/owner in the program?U.S. residents at least 18 years old, UGMA/UTMA custodians, and legal entities. A MET contract cannot be purchased by residents of Arizona, Illinois, New York, North Dakota, Ohio, or Vermont.
Significant time or age restrictions imposed by the program:Contract benefits must be used within 15 years after the projected college entrance date.
Minimum contributions:In the December 2017 - April 2018 enrollment, $1,644 for a one-semester Community College contract purchased in a lump sum for a newborn, installment available for as low as $14 per month.
Contract prices:2018-19 Enrollment:
MET contracts offer three purchase options: Lump Sum, Pay-As-You-Go, and Monthly.
The Pay-As-You-Go option allows purchases of credit hours. From December 1, 2018 to April 30, 2019, prices range from $111 per credit hour for a community college contract to $594 per credit hour for a full benefits contract. From May 1, 2019 to September 30, 2019 prices range from $119 to $612.
Monthly purchases are available in four, seven, ten, and fifteen year increments, depending on the age of the beneficiary. From December 1, 2018 to April 30, 2019 payments range from $14 for community college benefits (newborn to age 3) to $1,704 for full benefits (newborn to 8th grade). From May 1, 2019 through September 30, 2019, prices range from $15 to $1,752.
For the period of December 1, 2018 through April 30, 2019, lump sum prices range from as little as $1,660 for a one-semester community college contract to as much as $71,280 for a four-year full benefits contract. From May 1, 2019 to September 30, 2019 prices range from $1,785 to $73,440.
Available tuition packages:The Full Benefits contract pays for on to ten semesters of tuition and mandatory fees at any Michigan public institution; the Limited Benefits contract pays for one to ten semesters of tuition and mandatory fees at Michigan public institutions up to 105% of the weighted average tuition of all Michigan four-year universities; and the Community College contract pays one to four semesters of in-district tuition and mandatory fees at any Michigan public community college.
Benefits for beneficiary attending private or out-of-state institution:Weighted average public tuition if used at in-state private colleges and the average public tuition if used out-of-state.
Contract payment options:Lump sum, or monthly over 4 years, 7 years, 10 years, or 15 years. Date when payments begin under a monthly purchase contract depends on when the contract is submitted. Pay-As-You-Go option requires a minimum initial purchase of one-credit hour, but subsequent purchases can be made at any time in minimum increments of $25. Pay-As-You-Go contracts must be completed 45 days before use.
Are program benefits backed by the full faith and credit of the state?No
Are program benefits collateralized or guaranteed in any other way?No
Fees & Expenses
Enrollment or application fee:On-line enrollment: $25
Enrollment by mail: $60
Taxes and other Benefits
- Tax deduction for single filers$5,000/yr
- Tax deduction for joint filers$10,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.