A 529 plan (named after Section 529 of the Internal Revenue Code) is a college savings plan that allows families to establish a tax-advantaged savings vehicle for educational purposes.
529 plans work in two ways: as an investment account from which families can withdraw funds for education or as a plan through which future tuition credits can be purchased. Earnings are not subject to federal tax and generally not subject to state tax when used for qualified educational expenses (tuition, fees, books, and room and board) of the designated beneficiary.
Each state has its own plan with differing features. Families are not limited to investing in their state of residence, however contributions to a 529 plan are not deductible.
Grove City College is an eligible educational institution for receiving 529 plan funds from both types of plans from all states.
Grove City College partners with the Private College 529 Plan for purchasing future tuition credits. In addition to the investment option, the Private College 529 Plan also allows participants to “lock in” tuition rates which provides cost certainty for future semesters at Grove City College.
For disbursements from a 529 plan to Grove City College, make the request directly through the 529 plan. Checks should be payable to Grove City College and should include the student's name and their Grove City College ID number. Mail checks to:
Grove City College
Attn: Student Accounts
100 Campus Drive
Grove City, PA 16127
Please notify the Office of Student Accounts each semester a disbursement is requested. Include the disbursement information (student name, Grove Cit College ID number, amount, plan name, and expected disbursement date). The College recognizes that payments from 529 plans can be delayed so this notification assists the Office of Student Accounts in determining late payment fees.
Please note: The information contained herein should not be construed as tax or investment advice. As always, before making any financial decision, it is important to research the topic and obtain advice from licensed professionals.