SET with MET
MET offers monthly purchase options in four, seven, ten or fifteen year increments depending on the age of the beneficiary. The age of the beneficiary determines which plan is available as the contract must be paid-in-full by the time the beneficiary reaches the age of eighteen. MET’s price chart lists the prices for each plan and the ages of eligibility.
Monthly payments can be made by:
Electronic funds transfer
Monthly payments will begin either February 25, May 25, September 25 or October 25, depending on the date of enrollment.
Monthly payments should be sent to:
MET, Dept. 771368
P.O. Box 77000
Detroit, MI 48277-1368
Write MET contract number on memo line.
What happens if all the monthly payments are not made?
Each monthly purchase amount accepted by MET represents a percentage of benefits purchased. If any monthly purchase amount (and any late fee due) is not paid within 60 days after it is due, the purchaser will lose the opportunity to submit any further monthly purchase amounts under the contract. The total of all monthly purchases accepted by MET remain with MET until the beneficiary is 18 or graduates from high school.
For example: Mr. Smith purchases a one-year full benefits contract (30 credits) for his son John under the four-year monthly purchase plan. The contract price is $17,820 paid monthly in the amount of $426.00 for 48 months*. Mr. Smith makes 24 monthly payments (50 percent of the total contract), but is unable to continue to make payments due to an unforeseen financial difficulty. After 60 days has passed and MET has not received a payment, the contract enters default status. MET retains the accepted monthly purchase amounts and when John Smith turns 18 or graduates from high school, he will have 15 credits (50 percent of the full contract total of 30) of educational benefits he can use to attend college.
* Monthly purchase amounts include a 5.5 percent rate of return, therefore the total amount paid will be more than if paid by lump sum.