Library Hosts Info Night on College Savings Plans

Only 35% of families use college savings programs.

In partnership with the State of Michigan and Chelsea State Bank, the Chelsea District Library (CDL) is offering a free informational session about education savings programs offered by the State of Michigan. The event is scheduled for Tuesday, October 14, from 6:30 to 7:30 p.m. at the CDL and on Zoom.

According to the National Center for Education Statistics, the cost of college tuition in the U.S. has more than doubled since 2000. In Michigan, in-state tuition and fees at public universities now average around $14,000 per year, slightly higher than the national average of about $11,000. These estimates do not include the cost of room, board, or other living expenses.

Despite that, “Only 35% of families are using college savings programs,” said Joanne Rau, President and CEO of Chelsea State Bank, in the bank’s press release about the event. “We want to help families understand their options and choose what works best for them.”

During the session, a Michigan Department of Treasury representative will present information about the state’s two main college savings assistance programs–the Michigan Education Trust Plan (MET) and the Michigan Education Savings Plan (MESP). Both MET and MESP are considered ‘529 programs’, which means they are educational savings programs offered through the State of Michigan.

Though both are 529 programs, there are big differences between the two. For example, one program allows people to “pre-pay” a future student’s tuition by making contributions now, at today’s tuition rates, rather than an institution’s rate at the time of attendance. While it guarantees a lower overall tuition cost, that program only covers tuition and fees and can’t be used for the many other expenses associated with a post-high school education.

The other program acts more like a tax-advantaged investment account, which could have more risk, but it can also be used for a broader range of educational expenses. Which plan might be the most helpful to local families will depend on each student’s educational plans.

Library Director Lori Coryell praised Chelsea State Bank’s contribution saying, “We are incredibly grateful to Chelsea State Bank for their commitment to local families and helping educate our community about options for saving for college. Higher education is expensive, and reducing debt helps our next generation on a pathway to success.”

The event is free and can be attended in person or virtually by registering at the CDL website.