In response to 2003-2004 tuition hikes, officials at the Virginia Prepaid Education Program have delayed enrollment in their program from February 2004 until after most colleges and universities set tuition rates for the 2004-2005 academic year this spring, said Diana Cantor, executive director of the Virginia College Savings Plan, a state-sponsored financial aid program.
The Virginia Prepaid Education Program enables families to save early and prepare for their children's college education through contracts, Cantor said.
Any tuition increase beyond what is projected by those operating the Virginia College Savings Plan "will cause a potential financial strain" on the program, Cantor said.
She noted that with the rise in tuition costs, families will be more apt to invest in these tuition programs, thus providing additional funding.
Cantor said the program is tentatively slated to reopen in the fall.
"We will not reopen unless we are relatively sure that the contracts will be financially sound," Cantor said.
The VPEP encourages and provides a tax-exempt environment for investment. VPEP investments grow without being hindered by federal taxes, according to the Virginia College Savings Plan Web site.
In order to set up a contract with VPEP, the potential student or purchaser of the contract must be a Virginia resident, according to the Web site. The child must be no more than nine years of age.
It can be applied to all of the commonwealth's public colleges and universities, as well as some private institutions in Virginia. VPEP can also apply to some national and international institutions, according to the Web site.
VPEP is one of three college tuition programs provided by the Commonwealth under Internal Revenue Code Section 529, along with College America and the Virginia Education Savings Trust.
VPEP has been in operation since December 1996, Cantor said.
She noted that over 68,000 VPEP contracts have been made, representing over $750 million.
"These programs serve as good vehicles for students and their families to fund education", said Yoke San Reynolds, University vice president for finance. "We need a fully flushed out set of options for students."
The current General Assembly debate on the budget does not seem to represent a cause for concern in regards to VPEP. "We don't get any funds from the General Assembly anyway," Cantor said.
Those already enrolled in the program will not be affected by future tuition increases. The commonwealth guarantees the contracts, Cantor said.
"That is the beauty of the plan," she said.
However, Reynolds said unanticipated tuition increases will undoubtedly affect potential applicants for the program.
"It isn't immediate," Reynolds said. "The impact will be seen in a few years."
Read More
Virginia primary elections feature contested race for Democratic Lt. Gov. candidate
By Nicolas Biernacki | 6 hours agoEligible voters can find more information about early voting by consulting the City Department of Voter Registration & Elections website or the County Department of Elections website.
Professor and researcher Daniel Flannery discusses youth violence and prevention
By Jackie Bond | 14 hours agoDr. Daniel Flannery discussed the cycle of violence from adolescence to adulthood, and the correlation between unrestricted gun access and mass violence.
Board of Visitors ends support for racial diversity goals
By Brendon Bordwine | YesterdayThe newly approved resolution, titled “Advancing Free Inquiry and Viewpoint Diversity at U.Va.”, calls for efforts to create a campus environment that supports open political dialogue, constructive debate and respect for differing perspectives.
