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For Immediate Release | |||||
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on New Tuition Saving Plan Lake Forest, Ill. – “College Smarts” is the title of an item in the February 23 issue of BusinessWeek magazine which uses Lake Forest College as a prime example of the advantages of a new and unique college savings plan. “With the Independent 529 Plan, you can lock in a discount on today’s tuition costs for a child still in diapers at some 231 private colleges…Lake Forest College is taking 4% off this year’s tuition and fees of $24,506,” reports the magazine. The BusinessWeek article goes on to explain that the 4% rate compounds annually, “so if your infant winds up at Lake Forest in 2023, you can lock in $1 of tuition for 45 cents today. Another way to put it: If you want to buy a full year’s tuition at Lake Forest in 2023, you will need to put down $11,085 now. That’s 55% off today’s tuition and fees, but the savings are far greater on the projected 2023 cost.” The Independent 529 Plan (I529) was launched last autumn by some 220 private colleges in the Tuition Plan Consortium (TPC), including Lake Forest, and more institutions have joined the plan since then. The nonprofit TPC was established to make education at independent colleges and universities more affordable and accessible for families. The I529 Plan is the only national prepaid tuition program for private colleges. “It’s like buying a shopping certificate for use at any of the stores at a mall,” says Doug Brown, president and CEO of the TPC. All colleges in the I529 Plan must offer a discount off their tuition rates, and Lake Forest offers one of the most generous discounts. “We believe strongly in the importance of long term saving for college, in order for families to afford our level of quality education in the future they need to commit their financial resources now. Our participation in the I529 Plan and our significant discount is meant to encourage families to do just that ” says Leslie Chapman, vice president for business affairs at Lake Forest. There is no financial risk for a consumer who invests in the I529 Plan on behalf of a child. Purchase of a certificate does not guarantee admission to Lake Forest or to any other school. If a child does not attend one of the member colleges, refunds and rollovers into other “529” (tax-advantaged plans named after a provision in the IRS code) plans are available. There are no federal taxes to the individual when a tuition certificate is redeemed at a participating institution. For more information on the Independent 529 Plan, go to www.independent529plan.org, or call 1-888-718-7878. Lake Forest College is a private, liberal arts institution located 30 miles north of downtown Chicago. The College has 1,300 students representing 46 states and 50 other countries.
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