EVERETT – If Austin Carlton were headed for his freshman year at the college of his choice this fall, he could expect to pay at least $17,240 in tuition – and an estimated $15,150 in living expenses.
You see, Austin is a fan of Tony Blair, and he hopes to study politics at Oxford University in England. Sister Jordan, just one year younger, is a college-bound would-be-writer.
Good thing Austin, 12, and Jordan, 11, still have some time to save. And their parents opened Guaranteed Education Tuition accounts five years ago.
GET is Washington state’s prepaid college tuition program. It encourages families to plan ahead by guaranteeing that the money saved for a child’s college education will keep pace with rising college tuition.
“The program is an opportunity to prepay college tuition at today’s prices,” said Betty Lochner, director of the GET program. “The message we’re trying to get out is ‘start young.’ It’s outrageous how expensive college is getting.”
The Legislature already has approved an annual 7 percent tuition increase for state schools. Inflation is at least equally as daunting at private schools and in other public university systems. Expect the cost of higher education to continue rising steadily, Lochner said.
Except, in a sense, for families who invest in GET and similar prepaid tuition programs. A couple with a newborn daughter could open a GET account today, and if that child enrolls in one of Washington’s public universities, pay the 2005-06 tuition price for her freshman year in 2024.
If that girl decides to pursue a private education or enroll out of state, her parents’ savings can be used toward the school of her choice without penalty.
That’s exactly what prompted Thomas and Shannon Carlton of Everett to open GET accounts for Austin and Jordan.
“We bought two years of tuition for each,” Thomas Carlton said. “We really stretched ourselves to do that, but we decided it would be a good start for them.” He is merchant technology manager for Macy’s in Seattle, and she is a grocery store clerk. The couple were committed to sending their children to college, and they knew they needed to plan ahead.
They heard about GET on a public access TV debate and followed up with Internet research. Initially unsure if a prepaid tuition program was a good investment versus an interest-bearing college savings plan, they decided it was more reliable.
“We knew it was going to cover the cost of (two years’) tuition no matter what happens,” Thomas Carlton said.
Individuals can open GET accounts for their own use or on someone else’s behalf. They can buy units – this year at $66 apiece, toward one, two, three, four or five years of tuition. One hundred units equals one year of tuition and state-mandated fees at the most expensive public university in Washington.
There are two ways to buy GET units: in a lump sum or through payment plans.
Families who have money to invest up front may purchase up to 500 units at once. This lump- sum option allows additions as money becomes available, but at future prices. And anyone can contribute – the student, parents, grandparents, well-wishers.
Payment plans allow a family to count on a regular monthly contribution of the same amount for the full life of the plan. They include interest. For example, a parent opening a 15-year plan today to fund five years’ tuition could expect to pay $300 a month.
If that seems staggering, families may choose to purchase fewer units. But consider this: That plan would amount to less than $11,000 tuition a year in 2020.
Current undergraduate resident tuition at the University of Washington, the state’s most expensive, is $5,610 a year. At the current rate of inflation, tuition in 2020 easily will top $11,000 Should the student in question choose a lower-pried institution, remaining money can be spent on books, room and board and some other education-related expenses.
The benefits of enrolling in a prepaid college tuition plan will increase with passage of a new federal law, Lochner said. Previously, prepaid tuition accounts counted against students applying for need-based aid. The new law mostly exempts GET and related accounts.
For families who are interested in opening a GET account, there is some urgency. Seventeen days remain to enroll in the program at this year’s unit price of $66. Each year, the program raises the cost of buying in about 7 percent to keep pace with tuition hikes.
For example, when the Carltons opened their children’s accounts, they paid only $42 per unit.
“The earlier you can get started saving, the more you save,” Lochner noted. “The number one complaint I hear from people is that they wish would have known about the program sooner.”
Proud as the Carltons are of their son’s college goal, they know it comes with a hefty price. That’s why the sacrifice was worthwhile to open the account as soon as possible, Thomas Carlton said. The GET accounts may not cover all of Austin and Jordan’s education expenses, but “this way, theyre not having to worry about it as much … . they’ll probably have to work less and end up with less debt,” he said.
“This program is really about helping families plan ahead and build dreams for kids,” Lochner added, noting that, on average, students starting college this year will incur $18,000 in loan debt before they are done. “It makes a huge difference in whether or not kids can go to school and where they go.”
Kristin Fetters-Walp is a Lake Stevens freelance writer.
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