The Guaranteed Education Tuition Program, or GET Program, is one of two 529 college savings plans administered by Washington College Savings Plans (WA529). WA529 is part of

Washington Student Achievement Council The Washington Student Achievement Council (WSAC) is the Washington State Government agency overseeing higher education in the state of Washington Washington commonly refers to: * Washington (state), United States * Washington, D.C., the capita ...

, an agency of the

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Washington Washington commonly refers to: * Washington (state), United States * Washington, D.C., the capital of the United States ** A metonym for the federal government of the United States ** Washington metropolitan area, the metropolitan area centered o ...

for residents of the state. GET is a 529 prepaid tuition savings plan, while Washington's other plan, DreamAhead, is a 529 college investment plan. As with any 529 plan, account owners invest in the program on behalf of a beneficiary – typically the owner's child or grandchild – in order to prepay for expenses associated with the beneficiary attending a

higher education Higher education is tertiary education leading to award of an academic degree. Higher education, also called post-secondary education, third-level or tertiary education, is an optional final stage of formal learning that occurs after completi ...

institution.

Overview

The GET Program is a prepaid 529 plan, and accounts may only be opened by, or on behalf of, residents of the state of

. The value of an account is dictated by the quantity of "units" purchased. Units have a purchase value and a payout value which are subject to increase yearly. The

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payout value of one unit is always equal to one percent of the annual full-time,

undergraduate Undergraduate education is education conducted after secondary education and before postgraduate education. It typically includes all postsecondary programs up to the level of a bachelor's degree. For example, in the United States, an entry-lev ...

, in-state tuition and state-mandated fees at the most expensive

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in the state – either the

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. Through June 30, 2021, the purchase price of one unit is $133 and the payout value is $111.03. This premium over current tuition provides financial stability for the program at the expense of program participant returns, since tuition is guaranteed in the future, regardless of how much it increases. Current estimates project that GET units should be held for several years to see financial gain, versus other investment options which may provide immediate return. GET is aggressively marketed as a long-term program for families with young children. Use of the funds invested in GET are restricted to tuition and other expenses associated with

(known as "qualified higher education expenses," e.g., room and board, books and supplies, mandatory fees, laptops and computer software). Units purchased must be retained for a minimum of two years before they can be used. Investments are not tax-deductible; however, the increase in account value over time, as well as disbursements to pay for higher-education expenses, are both tax-free. Disbursements for purposes other than to pay for higher-education expenses are subject to

income taxes An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

and/or penalties imposed by both the program and the

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; exceptions are made for certain circumstances such as the death of the beneficiary or the beneficiary receiving a

scholarship A scholarship is a form of financial aid awarded to students for further education. Generally, scholarships are awarded based on a set of criteria such as academic merit, diversity and inclusion, athletic skill, and financial need. Scholarsh ...

, in which case income tax is still imposed but penalties are not. Accounts may only be opened by, or on behalf of, Washington residents; however, disbursements from the program may be made to any higher education institution in the United States, as well as some foreign institutions, that participate in financial aid programs through the

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. Accounts have the same monetary value wherever they are used. Accounts are fully transferable to other relatives of the initial beneficiary. Contributions may be made in lump sum or regular payments may be made on a custom monthly plan. The Account Owner retains full control of the account. Investments in the program are backed by Washington State; i.e., the state assumes all investment risk and guarantees that returns on investments will keep pace with inflation and increases in college tuition over time. The program currently does not receive any appropriations from the state; however, per state law RCW 28B.95.050,[1
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Unit Pricing

For 2021-2022, the unit price and payout value were $114.01. For 2022-2023, the unit price and payout value are $116.63.

External links

Washington College Savings Plans (GET and DreamAhead)
Official site
Washington Student Achievement Council
Official site

References

{{reflist1. https://apps.leg.wa.gov/RCW/default.aspx?cite=28B.95.050. Washington State Legislature Personal finance Education finance in the United States

Overview

Unit Pricing

See also

External links

References