Mulhern noted that contributions made to Michigan Education Trust (MET) and the Michigan Education Savings Program (MESP) are deductible from 2003 state income taxes if contributions are made by December 31. Partly to allow families to take advantage of that deduction, Mulhern announced, MET will open enrollment December 15 for contributions to the state’s prepaid tuition program. MESP accepts contributions at any time.

Photo Gallery

"The gift of higher education is one of the most important any family can give a child," Mulhern said. "Grandparents, aunts, uncles, and other relatives might want to consider whether this year they want to give a gift that truly does go on giving for life."

"Michigan offers two 529 college savings programs that have been acclaimed by independent groups as among the finest in the nation," said Mulhern. "And one important reason is that Michigan residents can gain a state income tax deduction from these two programs — no others."

State Treasurer Jay Rising noted that MET, the state’s prepaid tuition program, will have an open enrollment period from December 15, 2003 through April 15, 2004. The MET program is returning to a graduated pricing structure, with the contract prices dependent upon the age or grade of the intended beneficiary. In addition, contracts can be purchased by semester. According to Treasurer Rising, the total contract price, including enrollment fees, qualifies for a Michigan income tax deduction on returns filed in 2004, if the contract is postmarked by December 31, 2003. "We believe these changes will make the MET program more attractive and more affordable for Michigan families," said Rising.

Rising also noted that those who open or make additional contributions to an MESP account by December 31, 2003, receive a Michigan income tax deduction of up to $10,000. MESP gives families three investment options, with flexible use of withdrawals for tuition, room, board, books and other higher education expenses at qualified institutions across the nation and internationally. "MESP keeps growing, with the average account size increasing from $3,100 to $4,900 this year. Families who invest in MESP need to realize the importance of continued contributions to make their accounts grow sufficiently in the face of rising college costs."

Today also marked the debut of the MESP Piggybank Mobile, a Ford Focus wrapped to look like a pink piggybank. This marketing innovation will be on display at MESP events around the state.

More than 71,618 MET contracts have been purchased since the program debuted in 1988, with total asset value of $962 million. Today, 20,833 contracts have been paid in full, and 12,439 are in payment status.

Since MESP opened in the fall of 2000, 98,210 accounts have been opened, with value of $491 million. About 12,663 matching grant accounts have been applied for and accepted. The state matching grant provides a $1 state contribution for every $3 contributed on behalf of a qualified beneficiary. The match is available for children six or younger who reside in Michigan, with a custodial parent whose adjusted gross income does not exceed $80,000, and is only available during the first year contributions are made.

More information on MET is available at: www.met4kid.com, or by calling 1-800-MET-4-KID. Information about MESP is available at www.misaves.com or by calling 1-877-861-MESP.