Michigan celebrates 529 Day by creating more opportunities for college savings for families

Special bonuses, $25 enrollment minimum help more families take the first step in their children’s educational future

In honor of National 529 Day and Gov. Gretchen Whitmer’s proclamation of 529 Awareness Day in Michigan, the state’s two direct-sold college savings programs—Michigan Education Trust (MET) and Michigan Education Savings Program (MESP)—are opening new doors for families beginning to save for their children’s future.

A 529 plan is a tax-advantaged savings account designed to help families save for future education expenses.

MET, the state’s prepaid tuition savings program, has reduced its initial contribution amount to just $25 — its lowest ever — and is offering a $50 bonus for new and existing account owners who contribute at least $250 to an existing account or open a new one between May 29 and June 1. Find the full set of rules on MET's website.

“For more than 35 years, MET has helped make college possible for Michigan families,” said Diane Brewer, executive director of MET. “Now, with just $25, you can open a MET and begin securing tomorrow’s tuition at today’s prices. We want everyone to know: It’s never too early to start investing with MET.”

Certified financial planner Michael Brocavich, partner and director of financial planning at the Southfield-based Center for Financial Planning, praised the move as an important step toward increasing participation.

“Too many families assume saving for college requires a large upfront investment. But a $25 minimum makes this accessible to everyone, and starting small still builds meaningful momentum,” Brocavich said. “MET offers a disciplined, tax-smart way to make sure future educational needs don’t become a financial crisis.”

Pam Brady of Clinton Township, who has opened eight MET contracts for her daughter and grandchildren, knows firsthand the long-term benefits.

“I opened my first MET in the late ’80s when the program was brand-new. I’ve watched it help cover community college, university and even graduate school for my family,” Brady said. “It’s one of the smartest things I’ve ever done — and it’s never been easier for other families to get started.”

The MET and MESP teams hold in-person events across the state where families can ask questions, open accounts and get one-on-one help. A new joint YouTube page from both programs offers informational videos to help parents and grandparents understand the benefits and features of each plan.

Both MET and MESP provide state tax deductions on contributions, and qualified withdrawals are exempt from federal and state income taxes. MET also allows families to save for future use at Michigan public colleges — and funds are transferable to private and out-of-state schools.

“Whether it’s grandparents looking to give a meaningful gift or parents planning for the years ahead, Michigan’s 529 programs make saving for education easier, smarter and more inclusive than ever,” Brewer said.

About MET

Administered by the Michigan Department of Treasury, MET is the state’s 529 prepaid tuition savings program. It allows families to buy future credits at today’s prices and use the credits at Michigan public colleges, and with flexibility at private, out-of-state institutions and trade schools.

About MESP

MESP is Michigan’s direct-sold investment 529 college savings plan. It offers flexible investment options and potential tax-free growth when used for qualified higher education expenses such as tuition, room and board, and books.