Planning for an education

It took some juggling to finance Lois Freeman’s college education.

Her parents paid for some of it with savings and whatever they could afford out of their regular earnings.

Lois covered the rest of the bill, working various jobs throughout her freshman, sophomore and junior years at the University of Washington.

“It was difficult sometimes, because you’re at school and ideally want to focus all your attention on that,” said 34-year-old Lois, who lives in Mill Creek with her husband and three children. “On the other hand, I was able to pay for my education without borrowing any money. I didn’t have any debt hanging over my head when I graduated.”

It’s a rare luxury on college campuses, where fees and tuition increase annually at twice the rate of inflation.

The National Center for Education Statistics reports that 75 percent of American undergraduates receive some form of financial aid pay for college and that 50 percent of American undergraduates have already racked up between $20,000 and $40,000 in student loans.

Lois hopes her children — 2-year-old Madeline and 6-week-old twins Zoe and Jon — won’t be among them.

She and her husband, 44-year-old Curt, started paying for the children’s college degrees two years ago through Washington’s Guaranteed Education Tuition program.

“When our oldest was born, we thought, ‘Wow, that’s a neat idea.’” Lois said. “Since our twins were born it’s become almost a necessity.”

Washington’s program, established 10 years ago, allows people to prepay for up to five years of tuition at a state university or college so long as the account holder or beneficiary is a Washington resident at the time the account is opened.

GET earnings are tax exempt, as are withdrawals when the money is used for qualified higher education expenses.

The program operates on a unit system. Account holders can purchase a maximum of 500 units, equivalent to five years tuition at a state college or university. The current rate is $74 per unit and is good through March 31 — the deadline for this year’s enrollment period.

“What we hear from people most often is, ‘We wish we’d heard about this program sooner,’” GET Associate Director for Communications Whitney DalBalcon said. “This really does provide another opportunity for families to put their children through college. The whole idea is to start when your children are young; just get started with a small investment every month or however often you can afford and we’ll help families come up with a plan.”

The Freemans, who have plenty to deal with day-to-day raising three children, say the burden of worrying how they will pay for their children to go to school is no longer an issue.

“I remember my husband and I were taking a walk after we found out I was pregnant with twins, and we felt so lucky that we already knew about this program and had started it with our oldest child,” Lois said. “It’s hard enough putting one person through college.”

The Freemans don’t know whether they’ll be able to fully finance tuition for three children, but they’re confident their children won’t have to depend on student loans.

“My kids may have to work through school like I did, and I’m not sure that’s a bad thing,” Lois said. “I just don’t want them to start out their lives in debt. I mean, let’s face it, when you first graduate from college and enter the work force you’re already in debt. You shouldn’t have to worry about making loan payments for the next 30 years.”