How does MET work? How does MET pay for future tuition costs? Who can access contract information? MET staff answer these important questions.
MET is a 529 prepaid tuition savings program which allows you to pay for future higher education at today’s price. MET is flexible, transferable, and even refundable. MET covers tuition and mandatory fees. Depending on the Beneficiary’s choices, MET provides:
The Michigan Department of Treasury’s Bureau of Investments manages MET Purchasers’ contributions. MET uses the contributions and investment earnings to pay MET Beneficiaries’ tuition costs and mandatory fees.
Only those persons listed on the contract as Beneficiary, Purchaser, or Appointee will be given contract-specific information. MET will provide general program information to all other inquiries.
Administration fees are assessed on the trust as a whole (less than one percent are allocated to program administration). Individual METs may be subject to a transfer fee, a termination fee (if terminated for not attending), non-sufficient funds (NSF) fee, if applicable. No other fees will be charged.
Yes. The Michigan Education Savings Program (MESP) and the Michigan Advisor Plan (MAP) offer multiple investment options to encourage families to save for higher education. Savings may be used for tuition, fees, room, board, books and equipment required for enrollment. For more information visit SaveWithMI529.com.
MiABLE is a 529 savings program for people with disabilities. MiABLE accounts provide eligible individuals the opportunity to save and fund a variety of qualified expenses without endangering eligibility for certain benefits such as Medicaid and Supplemental Security Income. For more information, go to SavewithAble.com.
Telephone help is available through the Michigan Relay Center by calling 711 for assistance.
Are before or after-tax dollars used to purchase MET? What if something happens to the Purchaser? MET staff have the answers.
$25. Your initial contribution is due by the 25th of the month after you enroll.
One day after the due date, MET will mail you a letter reminding you that it is still due. Thirty days after the due date, your contract will be canceled.
No. When purchasing MET, you are using after-tax dollars. Pre-tax contributions are usually reserved for certain types of retirement plans.
Yes. After MET enrollment, a MET rollover form must be submitted to the other 529 program and a check will be sent to MET.
You can view your current credit hour balance online at any time. If you contribute by mail, you will receive a letter by mail confirming the credit hours you purchased with your most recent contribution, as well as the total number of credit hours purchased to date. Regardless of the contribution method, you will receive quarterly and annual statements updating you on your current credit hour balance.
Yes. A Beneficiary can have any number of METs. A family may choose to have both a Community College plan and a university (Full or Limited Benefits) plan or multiple family members could choose to open up individual METs for the Beneficiary. The only limit is that each Beneficiary may accumulate up to 150 MET credits of any type.
No. You will be purchasing your credit hours based on the credit hour price in effect when MET receives your contribution. Current prices will be listed on our website.
To help families start saving earlier for their child’s future education, an age-based pricing structure--as opposed to charging one price across all ages--means families will realize significant savings the earlier they start saving with MET.
Yes. We offer Automatic Clearing House (ACH) contributions, and we also offer payroll deduction and electronic one-time contributions in addition to mailed-in contributions.
Contributions from friends and family can be made by mail or on the MET payment site. Only the Purchaser is eligible for the Michigan income tax deduction.
The Appointee is a third-party that has access to contract information. The Purchaser can elect to allow the Appointee to become the Purchaser in the event of the Purchaser’s death.
At the time of purchase, the Purchaser is asked to designate an individual who will receive a refund if benefits are not paid directly to a college or university. That person is the Refund Designee.
The federal Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 provides a limited exclusion from an individual’s bankruptcy estate (and, therefore, will not be available to creditors) for a MET contract. To be protected, the Beneficiary must be the Purchaser’s child, stepchild, grandchild, or step-grandchild, and the contract must have been purchased at least 365 days before filing for bankruptcy. The exclusion is limited to $5,000 for all MET contracts (and other qualified tuition plan contributions) for the Beneficiary between 365 and 720 days before the bankruptcy filing. Contracts purchased more than 720 days before a bankruptcy filing are generally excluded from the bankruptcy estate. Consult with a qualified advisor regarding the application of the laws, regulations, and rules to your particular facts and circumstance.
Can I attend any Michigan public university? What if I want to go to a private or out-of-state university? What if I don't want to go to college? MET staff cover this and more.
Yes. MET benefits can be used at any Michigan public university or college upon the student being admitted to that institution.
Yes, if MET may be billed for tuition and mandatory fees through your Michigan public school, MET may be used for study abroad programs.
No. A student may take one or more classes during consecutive or non-consecutive semesters until all the credit hours are used or until 15 years from their expected high school graduation year, whichever comes first.
No. A student has 15 academic years from their expected high school graduation year to use all credit hours, transfer unused credits or terminate their MET for a refund.
No. Section 8 of the MET contract allows a Beneficiary 15 academic years from the expected academic year to completely use all benefits or receive a refund.
Mandatory fees are those required to be paid by all students attending a particular institution. Application fees, contact hour fees, and fees which are course specific or program specific (such as program fees, lab fees for science and computer classes, etc.) or fees assessed based on the number of credit hours enrolled are not covered.
Yes. A Beneficiary may start at one school and decide to finish at another.
Yes. The Beneficiary can attend two different Michigan public schools at the same time.
You will need to Terminate your MET contract. MET will hold the funds to pay the school for four years (university contracts) or two years (Community College contracts). Then, any remaining funds will be released to the Refund Designee.
If a Beneficiary receives a full tuition scholarship, the MET is eligible for termination or transfer; the Refund Designee may receive a refund per contract provisions. A full scholarship must be equivalent to or greater than the MET years purchased. Alternatively, the student may transfer the contract to an immediate family member or use for graduate school. See question 12 regarding use at graduate school.
Students who receive partial tuition scholarships, grants, or other types of tuition assistance (including faculty/employee benefits paid by a public institution) may still use MET. The school may invoice MET for all credit hours for which a student enrolls. Any excess amount may be applied to other expenses or refunded to the student by the institution. Refer to your institution for their policy.
MET contracts are intended to cover undergraduate courses. However, if a student graduates from college after using their MET for undergraduate studies and has credit hours remaining, the remaining credit hours may be used toward graduate school or an advanced program at a Michigan public university or college at the upper-level undergraduate tuition rate. The student will be responsible to pay the difference to the school.
When a student reaches 18 years of age or receives a high school diploma, the student has the option of transferring the contract (all or part) to an immediate family member(s) or terminating the contract to obtain a refund payable to the Refund Designee.
The school does not charge MET for a dropped class if it is dropped prior to the 100% refund drop date. If you drop a class after the 100% refund date, the school invoices MET for the full amount of the class dropped and returns the partial refund (if any) to you (the student). In this situation, the credit hours dropped are deducted from the total number of credit hours allowed under your MET contract. If you (the student) repeat, fail, or do not finish a class, they will count against the total number of credit hours allowed under your MET.
Some bachelor’s degrees require more than 120 credit hours. A student may submit a Notice to Declare a Major Area of Study (Form 2780) to MET in their junior or senior year of college on MET Full Benefits contracts purchased between 1988 and 2012. Refer to Declaring a Major Area of Study for specifics.
MET benefits will be applied to the number of credit hours taken each semester, as reported by the institution. Institutions which are on a block rate credit hour system will invoice MET for the block rate but report the actual number of credits taken by the student. MET will deduct the credit hours reported by the institution from the student’s contract. These schools will not be able to bill MET for a portion of the credits you are enrolled in. For example, you are enrolled in 15 credits for the semester but only want the school to bill MET for 12 credits, MET will deduct 15 credits from your contract and pay the cost of these credits to the school.
MET provides payment of in-state undergraduate tuition and mandatory fees at a Michigan public university for Full and Limited Benefit plans. Each university determines residency requirements. A Beneficiary who lives out-of-state may still use their benefits at a Michigan public university. If the university classifies the student as an out-of-state resident, MET benefits will cover in-state tuition and mandatory fees. The student will be responsible to pay the difference between the out-of-state and in-state tuition.
When a Beneficiary reaches 18 years of age or receives a high school diploma, the MET can be terminated for a refund payable to the institution or the Refund Designee. The tax-exempt status of this type of refund will depend on the eligibility of the institution as certified by the U.S. Department of Education.
Once a Beneficiary is 18 years of age, or receives a high school diploma, the MET can be terminated for a refund. The Refund Designee may roll the funds into another 529 program within 60 days of the date of the check.
As a 529 program, when purchased by a parent, MET is recognized as a parental asset in determining the student’s federal financial aid eligibility.
MET provides the option for the Purchaser to select a Contingent Purchaser, in the event of the Purchaser’s death. Contact the MET office for available options and next steps.
How does a refund get issued? What happens when I am done using my MET? What happens if I terminate my MET, but then change my mind? Here the answers to these questions and more.
When MET is not used at a Michigan public college or university, MET credits are converted (terminated) into dollars payable to a school or Refund Designee. Termination applies to attendance at a Michigan private college, out-of-state college, trade school, military, full tuition scholarship, or not attending college.
On contracts purchased in 2019 and later, the Purchaser or the Beneficiary may terminate the MET for a refund and/or transfer benefits to an immediate family member. On METs purchased between 1988-2018, only a Beneficiary may terminate a contract and/or transfer benefits to an immediate family member. On all METs, the Beneficiary must be at least 18 years of age or has obtained a high school diploma for a termination or transfer to occur. The only exceptions are if the Beneficiary has died or is diagnosed as learning disabled; then a person with legal authority to act on behalf of the Beneficiary may terminate the contract.
Once the Beneficiary is 18 years of age or has obtained a high school diploma, the MET refunds may be directed either to a school or a Refund Designee. The Refund Designee may deposit the refund into another 529 from which it may then be transferred into a Roth IRA. Deposits are subject to Roth annual and lifetime contribution limits. Additionally, the MET plan must have been open for at least 15 years and contributions made within the last 5 years, and their earnings, cannot be rolled over. MET recommends speaking with a qualified tax or finance professional to understand how the rules apply to your specific situation.
MET funds can be redirected to the Michigan public school, however the MET contract does not provide for reversing the contract termination. If a MET has been terminated to pay the Refund Designee, the Refund Designee will have to pay the school directly. MET will not cover tuition costs in excess of the established refund value.
