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Virginia Prepaid Education Program (VPEP)

Virginia - Virginia College Savings Plan

529 Prepaid Plan

Click "+" to expand the plan details, click "-" to shrink the plan details.

Contact Information: www.virginia529.com Ph 1-888-567-0540

Management Information: Virginia College Savings Plan

Program Manager:	Contract Termination Date:
Virginia College Savings Plan	Not Applicable
Investment Manager(s):	Contract Termination Date(s):
Aberdeen	Not Applicable
American Funds	Not Applicable
Century Capital Management	Not Applicable
Chase Investment Counsel Corporation	Not Applicable
Donald Smith & Co.	Not Applicable
Franklin Templeton Investments	Not Applicable
INVESCO Institutional (N.A.), Inc.	Not Applicable
JPMorgan Investment Advisors Inc.	Not Applicable
Lord, Abbett & Co. LLC	Not Applicable
LSV Asset Management	Not Applicable
NWQ Investment Management Company	Not Applicable
Prudential	Not Applicable
Rothschild Asset Management, Inc.	Not Applicable
Sands Capital Management, Inc.	Not Applicable
State Treasury	Not Applicable
The Vanguard Group®	Not Applicable
Thompson, Siegel & Walmsley, Inc.	Not Applicable
Wellington Capital Management	Not Applicable
Western Asset Management Company	Not Applicable
Westfield Capital Management	Not Applicable

Plan Benefits: Tax Deductions - Tax Exemptions - Financial Aid - Other Benefits

Virginia offers state tax deductions for Virginia Prepaid Education Program (VPEP) contributions.

All VPEP account owners who have Virginia taxable income and file Virginia income tax returns can deduct from their Virginia taxable income up to $4,000 per year per contract or the amount paid during the year, whichever is less, with unlimited carry forward until the full price of the contract has been deducted. Only the account owner is allowed to deduct contributions to his or her account. The $4,000 annual cap does not apply to VPEP account owners who are age 70 or above. They may deduct the entire amount paid for a VPEP contract at one time or in any future tax years. If the funds are not used for higher education expenses, or if the account is rolled over to another state's Section 529 plan, the account owner must add the deducted amount back to his or her Virginia income for state income tax purposes unless the refund is due to the beneficiary's death, disability or receipt of a scholarship.

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Virginia offers state tax exemptions for earnings from Virginia Prepaid Education Program (VPEP).

Any earnings on VPEP contracts grow tax free at both the federal and state level, which means that the account owner does not have to pay federal or state tax on any interest or the increased contract value each year. If the contract is used for qualified higher education expenses, the difference between the purchase price and the amount paid out by VPEP (the earnings) is tax free. All nonqualified distributions (those not used for qualified higher education expenses) are subject to federal and state income tax on the earnings portion of the distribution. The interest will be taxed as ordinary income at the federal level. There is a Virginia state income tax exemption for earnings and interest from a VPEP contract if a distribution is made because of the beneficiary's death, disability or receipt of a scholarship.

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Virginia offers financial aid benefits for Virginia Prepaid Education Program (VPEP).

Ownership of a VPEP contract will not be taken into account when determining a student's eligibility for Virginia financial aid. VPEP benefits do not affect a student's eligibility for a Virginia Tuition Assistance Grant for Virginia residents who attend an eligible, independent, nonprofit institution of higher education in Virginia.

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Virginia offers other benefits for Virginia Prepaid Education Program (VPEP).

Under Virginia law, VPEP accounts are protected from creditors of either the account owner or the beneficiary, and this protection generally may be preserved by a debtor in a bankruptcy case. Additional protection of these assets is available under federal bankruptcy law, as amended by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).

Additional Information >

Prepaid Plan Information:

Requirements for Participation

Enrollment Period

Form of State Backing

Tuition Plans and Payment Options

Tuition Benefits Information

Virginia Prepaid Education Program (VPEP) tuition benefits - public in-state 4-year college.

A VPEP contract is guaranteed to cover in-state undergraduate tuition and all mandatory fees at Virginia four-year colleges and universities for the normal full-time course load for students enrolled in a general course of study. If there are additional charges for a specific course of study, such as nursing or engineering, or for more than a fulltime course load, these additional costs are not covered by VPEP.

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Virginia Prepaid Education Program (VPEP) tuition benefits - private in-state 4-year college.

For in-state private schools, VPEP will pay the lesser of 1) the payments made on the contract plus the actual rate of return or 2) the highest in-state undergraduate tuition and mandatory fees at a Virginia public school in the same academic year the benefits are used. The amount of VPEP benefits for Virginia private schools is likely to be less than the highest or even the average Virginia public college’s tuition and mandatory fees.

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Virginia Prepaid Education Program (VPEP) tuition benefits - out-of-state public or private college.

VPEP will pay the lesser of 1) the payments made on the contract plus interest at the composite reasonable rate of return or 2) the average in-state undergraduate tuition and mandatory fees at Virginia public schools for the same academic year the benefits are used. The amount of the VPEP benefit for out-of-state colleges is likely to be less than the average Virginia public college tuition and mandatory fees.

Additional Information >

Virginia Prepaid Education Program (VPEP) tuition benefits - public in-state 2-year community college.

A VPEP contract is guaranteed to cover in-state undergraduate tuition and all mandatory fees at Virginia public community colleges for the normal full-time course load for students enrolled in a general course of study. If there are additional charges for a specific course of study, such as nursing or engineering, or for more than a fulltime course load, these additional costs are not covered by VPEP.

Additional Information >

Virginia Prepaid Education Program (VPEP) tuition benefits - trade school.

VPEP benefits may also be used at certain forprofit vocational and technical schools and colleges that qualify as eligible educational institutions under Section 529 of the Internal Revenue Code. VPEP does not guarantee to cover the full cost of attendance at these schools. Students will receive the same benefits as if the student were attending a private college or university in Virginia or out of state.

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Virginia Prepaid Education Program (VPEP) benefits have time limitations.

The beneficiary has ten years from the projected high school graduation to use the benefits.

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Refunds

Additional Information

VPEP is one of the Section 529 qualified tuition programs offered by the Virginia College Savings Plan. VPEP has a statutory financial guarantee and pays full in-state undergraduate tuition and mandatory fees for the normal full-time course load at any public college in Virginia. Benefits can also be used to help cover tuition and fees at Virginia private colleges, as well as at most colleges and universities nationwide and, in certain cases, at schools around the world. The program is open to children in the ninth grade or younger if either the child or the account owner is a resident of Virginia. Account owners can decide how much to invest by choosing a contract and payment plan that suits their family budget. VPEP offers both a University Plan and a Community College Plan. Under the Community College Plan, you may purchase a one, two or three-year contract. Under the University Plan, you may purchase a one, two, three, four, or even five-year contract.

You can combine years from both plans (not to exceed a total of eight years of undergraduate study). Payment options include a single, lump sum payment, a five-year (60 month) payment plan for selected contracts, and monthly contributions until the child reaches college age. VPEP provides significant tax benefits, including federal tax-free withdrawals when funds are used for tuition and fees, and a Virginia state income tax deduction for the entire purchase price of a VPEP Contract. VPEP has a limited enrollment period each year.

Additional Information >

Plan Residency: Yes