It's Never Too Early To Think About College

~ By Susan Martensen, Communications and Marketing Manager,  Guaranteed Education Tuition(GET) Program

This winter you may catch something on the news, or hear friends talking about GET, Washington’s prepaid college tuition plan. With babies or toddlers at home, you wonder, “Do we need to be saving for college already? Really?”

The answer is yes. Over the past decade, tuition has increased an average of over 10% each year. It’s increased 46% in just the past three years, and even more double digit increases are expected. If that trend continues, one year’s tuition and state-mandated fees, costing around $10,000 today, will amount to over $35,000 a year when your newborn is heading to campus. Tuition will always go up, so Washington’s Guaranteed Education Tuition (GET) program helps families save for these predictable costs.

How does GET work?

GET works on a unit system, where 100 GET units purchased at today’s cost are guaranteed to be equal to the future cost of one year’s resident, undergraduate tuition and state-mandated fees at Washington’s most expensive public university when your child is ready for college – even if it doubles or triples in that time. No matter how much you set aside, your GET account will keep pace with college tuition. You can save as much as you like – from 1 to 500 units per child – with a monthly payment plan, or just add to your savings in lump sum whenever you choose.

Here are answers to questions we often hear from parents:

• What if my child wants to study elsewhere? Your GET account can be used anywhere in the country to pay tuition at colleges, universities or vocational schools, whether public or private. The value of GET units is based on tuition at Washington’s highest priced public university, but you can use that same monetary value anywhere. If tuition at your chosen school costs more, you pay the difference. If it costs less, you’ll have extra to put towards room and board, books etc.
• What if my child gets a scholarship, or if our plans change? You can transfer GET units to siblings or other family members, put them on hold, or request a refund. If tuition is covered, you can use GET for other qualified higher education expenses such as room and board, or books.
• What if I don’t save for college? You’ll be paying a lot more in the future. Your child may need to take out expensive loans. Though every bit helps, scholarships average only $3000 and most students still need to work to defray living expenses. The average student today graduates with $23,000 in debt. College tuition is only part of the overall picture, so you may need additional savings to help with room, board and books. GET is a good foundation for your college savings strategy because its increase in value is guaranteed.
• What’s the difference between GET and other savings plans? Unlike regular mutual funds or savings accounts, GET accounts offer tax-free growth and withdrawals. And unlike other tax-advantaged 529 savings plans, GET accounts are not subject to the ups and downs of the stock market. Instead, GET is guaranteed to keep pace with rising college tuition.
• Can I afford this now? With flexible savings options, most people can afford to start saving for their child’s future. Families can sign up for a monthly payment plan, or choose to contribute amounts in lump sum whenever money is available. Or, they can save with a combination of both. Friends and relatives can also contribute, which is a great idea for birthdays and other holidays. Enrolling is easy online at www.get.wa.gov

GET is a long-term plan that’s already helped thousands of Washington families save for college. Here are some tips for getting started:

• Start when your children are young – When you start early you can save more.  And let your kids know you’re saving for college. Studies have shown that when kids know college can be in their future, they’re more likely to be better students along the way. Studies also show that kids with a college savings account are six times more likely to attend.
• Save what your budget allows – Save as much as you can, and know that every bit helps. Don’t worry if you can’t pay for all four years of college. Maybe you’ll save enough for community college, a technical school, or the first two years of university. The important thing is to save something. If your child has GET as a foundation, he or she will likely be able to add to it with scholarships, grants, part-time work, and if necessary some loans. Most families pay for college with a variety of resources.
• Ask others to help – Anyone can contribute to your GET account, so ask your parents, grandparents, aunts, uncles and friends to direct those baby gifts and birthday presents to your child’s college fund.
  The important point is that families who start saving early have the opportunity to save the most and to realize the greatest gain from their GET account.

Enrollment this year is open through May 31, 2012. You can find out more information at www.get.wa.gov, and even view helpful videos there on how to get started. For specific account questions, email GETInfo@hecb.wa.gov or call GET Customer Service at (800)955-2318.