Change to VHIEP will reduce fees
Change to VHIEP
will reduce fees
Families that use the state’s 529 college savings plan will soon be able to save just a little bit more.
The 14,000 account holders with the Vermont Higher Education Investment Plan (VHIEP) will see a reduction in the amount of fees they have to pay under the program. The change is projected to save account holders approximately $100,000 annually.
Nearly every state offers some sort of 529 college savings plan, which is named after the provision in the IRS tax code that allows states to offer tax incentives to save for college. Vermont provides a nonrefundable tax credit of 10 percent of the first $2,500 contributed per beneficiary, per year.
VHIEP, which began in 1999, has $225 million in assets. To date, 3,470 students have used more than $78 million from VHEIP accounts to pay for education or training after high school.
In 2012, $36 million was invested into VHEIP, with about $1.8 million realized in tax credits.
VHEIP accounts can be started with as little as $25. For more information, visit www.vheip.org or call (800) 637-5860.