If you are shopping for a gift to give young people that is different and could possibly change their lives, our friends at The Michigan Education Trust may have the perfect one for you. Executive Director Robin Lott spoke to Jason Carr and Kim DeGiulio about how an education can be the best gift to give this holiday season.
Lott said The Michigan Education Trust, or MET, is a 529 Prepaid Tuition Plan that allows for the pre-purchase of tuition. It allows parents to lock in current tuition prices and buy credit hours for any Michigan public or out-of-state private colleges. The trust is available for any child or person expecting a child, the parent-to-be can open the trust in his or her name then transfer it to the child's name once they have a Social Security number.
You are able to get state tax deductions on the total amount you put into the program. It's deductible on Michigan income tax as a subtraction from income, which will reduce the amount of tax that you owe. One of the ways to invest is in purchasing college credits in a pay-as-you go manner. It continues to stay open as long as funds are deposited. If the child changes his or her mind about college or gets a full scholarship, the fund can be cashed out.
To learn more about the Michigan Education Trust, visit setwithmet.com