The Ohio Tuition Trust
The Prepaid Tuition Program has most of the things families are looking for when choosing a way to save for higher education. Created in 1989 by the Ohio General Assembly, the program lets you purchase tuition at, or even below, today's rates for your child to use in the future at any university in the country.
Administered by the Ohio Tuition Trust Authority, a state agency, the program lets you take advantage of volume discounts when you purchase a lot of tuition at once, or allows you to purchase a little tuition every month over the years as your children grow. The program is virtually risk-free, as it is backed by the full faith and credit of the state of Ohio. It is the only savings option guaranteed to keep pace with tuition inflation.
Money you put in the program is dedicated solely to your child's future education, with transfer and refund options available when your child reaches college age. Payments are affordable and can be made through transfers from a bank account or payroll deduction for as little as $15 a month. Any resident of Ohio can enroll a child, even if the child lives in another state. Whether used in conjunction with other savings and investment options or used exclusively as your college savings vehicle, the Ohio Prepaid Tuition Program will help ensure your children are financially prepared for college.
Prepaid tuition units You start buying future college tuition and fees now for your child by purchasing affordable tuition units. Each unit costs approximately 1 percent of the average tuition being charged today at Ohio public universities, and it will be redeemed in the future for 1 percent of the average tuition being charged at Ohio public universities the year your child uses it for college.
The base cost of a tuition unit is determined by calculating 1 percent of the weighted average tuition (WAT) at Ohio's 13, four-year public universities. (The WAT represents the average tuition being paid per year by college students attending Ohio public universities.)
1998-99 weighted average tuition:
1998-99 base tuition unit cost: $4,303
$43.03 This base price is actuarially adjusted, higher or lower, depending on the purchase method you use when you purchase tuition units. There are three ways to buy prepaid tuition, and the price per tuition unit varies according to the method you choose. Prices for tuition units in academic year 1998-99 (Oct. 1, 1998 - Sept. 30, 1999) range from $38 to $45.50.
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