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 are generally not subject to state tax when used for qualified educational expenses (tuition, fees, books, food, and housing) 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 Grove City College ID number. Mail checks to:
Grove City College Attn: Student Accounts 100 Campus Drive Grove City, PA 16127
Each academic year, undergraduate students will be required to complete an Annual Financial Responsibility Agreement and Health Insurance Submission Form. Students will include the amount and provider name for anticipated payments from their 529 savings plan during the upcoming year when completing this form. Dual enrolled and graduate students utilizing 529 savings plan funds for payment should send email notification to the Office of Student Accounts each semester including the disbursement information (student name and ID, amount, plan name, and expected disbursement date).
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.