A 529 plan (named after Section 529 of the Internal Revenue Code) is a college savings plan that allows families to establish a tax advantaged savings vehicle for educational purposes. 529 plans can work in two ways: as an investment account from which families can withdraw funds for education, or as a plan through which future tuition credits can be purchased. Earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of the designated beneficiary, such as tuition, fees, books, as well as room and board. Contributions to a 529 plan, however, are not deductible. Each state has its own plan with different features and families are not limited to investing in their state of residence. Grove City College is an eligible education institution for receiving 529 plan funds from both types of plans from all states.
For purchasing future tuition credits, Grove City College is pleased to partner with the Private College 529 Plan in providing this savings opportunity for our students and their families. In addition to an investment option, the Private College 529 Plan also allows participants to “lock in” tuition rates which provide cost certainty for future semesters at Grove City College. More information about this plan may be found at: www.privatecollege529.com.
For disbursements from a 529 plan to Grove City College, please make the request directly with the 529 plan. Checks should be payable to ‘Grove City College’ and reference the student name and ID number. Checks should be mailed to: Grove City College, Attn: Student Accounts, 100 Campus Drive, Grove City, PA 16127. Please send notification to the Student Accounts Office via email at firstname.lastname@example.org each semester a disbursement is requested including the disbursement information (student name and ID number, amount, plan name, expected disbursement date). The College recognizes that payments from 529 plans can be delayed so this notification assists the Student Accounts Office in determining late payment fees.
The information contained herein should not be construed as tax or investment advice. As always, before making any financial decision, it is important to research the issue and obtain advice from licensed professionals.