With in-state tuition at Washington’s public four-year universities ranging from $7,600 to more than $13,000 per year, the state offers two college savings plans designed to give parents and students options and flexibility.
Washington’s prepaid tuition plan, the Guaranteed Education Tuition (GET) program, has been in place since 1998.
A portfolio-based college savings plan opened for participants in 2018. It was launched as the DreamAhead College Investment Plan, but was rebranded as WA529 Invest earlier this year.
Both plans offer tax-advantages.
Predictability is a selling point for the GET plan, which is designed to keep pace with the highest tuition rate charged by a public university in Washington. One hundred GET units will cover a full year of tuition at any public college or university in Washington.
Luke Minor, senior director for post-secondary affordability at the Washington Student Achievement Council, says now is the time for families to get a head start on their savings growth by investing in GET units.
“We are charging $4 less per unit than the current payout value,” Minor told TVW’s The Impact.
People looking for more flexibility may be drawn to the WA529 Invest plan, which is structured more like a 401(k). According to Minor, participation is roughly split between the two plans..
“We have families, including myself, who use both,” explained Minor.
According to Minor, a common misconception is that the GET plan can only be used to pay tuition at a public, in-state college, but the funds can be tapped to pay for public or private college tuition in Washington or out of state.
Trade schools and apprenticeship programs are also approved uses for either plan.
According to Minor, students aren’t locked into going to college after money is tied up in a 529 plan, but withdrawals for non-tuition expenses may result in tax penalties.