Sunday, Sep. 21, 2008

Enrollment open for this year's GET program

By Ingrid Stegemoeller, Herald staff writer

Michael Carter didn't want future dinner table conversation with his family to focus on worry about how to pay for college.

So he and his wife Leah enrolled in the state's Guaranteed Education Tuition program and started buying college tuition for their kids, Aidan, 3, and Avery, 7 months.

"When we looked at tuition and how fast it's going up, it didn't make sense not to do it," said Michael Carter of Kennewick.

This year's enrollment period for the GET program opened last week and runs through March 31, offering families the chance to pay for tuition at today's rate and use it when kids are ready to go to college.

As of Wednesday, there were 250 new enrollments in the program, said Betty Lochner, director of the program.

"You're prepaying tuition so you're hedging against future tuition increases," she said.

The state guarantees that one year of tuition purchased today will buy a year of tuition in the future, no matter how much the cost increases.

One GET unit costs $76 this year and 100 units equal a year of tuition at the most expensive public state university, generally Washington State University or University of Washington.

The money can be used at any school that accepts federal financial aid, including trade schools and community colleges.

Families can buy up to 500 units per child, which can be used to cover higher costs at a private school or room and board.

"It's really up to families how much they want to budget," Lochner said, adding that families can buy units in lump sums or sign up for a monthly payment plan.

The Carters opted to pay monthly for both of their kids.

"Now that we've added it to the budget we don't even know that it's missing," Leah Carter said.

Plus, putting money into the account means it's designated for education.

"If it was just in a savings account, we'd spend it. This way it's committed," Michael Carter said.

Since tuition has risen an average of 7 percent annually at state schools, people who bought tuition 10 years ago would now see a 77 percent return, Lochner said.

"It's huge. It's just going to get worse," she said.

A GET unit cost $74 last year and the price is expected to rise about 7 percent a year to keep up with tuition, Lochner said.

Managing the account has been simple, the Carters said. And if either of their kids chooses not to go to college, they can use the account to go back to school themselves -- both are nurses at local hospitals -- or transfer the account to a niece or nephew.

Units must be in the account for two years or more before they can be used, Lochner said, so, "the younger you are, the bigger your savings are going to be."

More than 11,000 students have used their accounts at colleges in 49 states and five foreign countries.

The program has more than 91,000 accounts worth more than $1.1 billion.

Money is tax-exempt as long as it's used for education.

Paying for college can appear an unreachable goal for some families, but GET turns it into bite-sized pieces, Lochner said.

"Don't be overwhelmed," she said. "You don't have to buy 500 units, just start plugging away. It adds up quicker than you think."