Tuition program set to begin

Would you like to pay your newborn child's college tuition now, avoiding paying the tuition costs that will be in effect in 18 years?

That's possible thanks to the Nevada Prepaid Tuition Program, which was authorized by the 1997 Legislature and funded through June 30, 2001, with $1.2 million in seed money.

Gov. Bob Miller and State Treasurer Bob Seale will announce the official start-up of the program, which is under the direction of the treasurer's office, at 3:30 p.m. Thursday in the UNLV Richard Tam Alumni Center.

Larry Lee, management analyst for the program, said if there is enough interest the program will become permanent.

The program allows those who will be paying for college tuition to make payments into a state-controlled trust fund that locks future tuition into the rates the year the payments are begun.

"An outside investment management group will invest the money to cover the cost of tuition growth," Lee said.

A person can make one lump-sum payment covering four years of tuition, which would be due in February, or there is a five-year plan in which 60 monthly payments may be made.

"There is a pricing structure for each payment option," Lee said. "The structure is based upon the grade the child is in at the time the payment is being made.

"Newborn is cheapest and it goes on up to the ninth grade."

To be eligible for prepaid tuition the beneficiary must not yet have completed the ninth grade and must be 18 or younger.

The person making the prepaid tuition payment may purchase four years of tuition at a state university, two years at a community college or combine the two -- buying two years at a community college and two at the university.

The tuition may be purchased by anyone, not just the parents of the student.

"They can be gifts for other people," Lee said. "Somebody else can purchase a plan and you can apply money to it."

Fourteen states have prepaid tuition programs in effect, according to Lee, and others are in the process of creating them.

Refunds may be requested at any time, but depending upon the reason for the request there could be a penalty for early withdrawal.

Miller's wife, Sandy, will sign up their daughter, Megan, during the announcement ceremony, becoming the first to take advantage of the program.

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