December 13, 2005—Oberlin College is participating in Independent 529 Plan, a prepaid college tuition plan tailored specifically for private colleges. Responding to a national call to make higher education more affordable, Oberlin has joined more than 240 private colleges and universities to offer a tax-advantage way for families to save for tuition.

"Independent 529 Plan allows contributors to lock in tomorrow's tuition at less than today's price," said Doug Brown, president and CEO of Tuition Plan Consortium, the nonprofit group that oversees the plan, " making higher education accessible to more families." Section 529 plans, named for the IRS code that defines them, have gained in popularity over the last decade. As with all 529 programs, assets in an Independent 529 Plan account are transferable to other members of the family, and refunds are available if the student receives a scholarship or decides not to attend college. Additionally, in the case of the Independent 529 Plan, assets are refundable if the student attends a school outside of the Tuition Plan Consortium.

"We see this plan as part of our ongoing effort to make higher education accessible to more families," said Oberlin College Director of Financial Aid Rob Reddy.  "The effectiveness of Independent 529 Plan is not dependent on the performance of the stock or bond markets. Rather, contributions go toward pre-purchasing tuition (the program does not cover room and board), in part or in whole, at less than today's price because each school in the plan offers participants a discount from current tuition rates."

"Independent 529 Plan proceeds can be used at any of the participating colleges," said Brown.  "Students don't choose their college at the time of purchase, but years later, after they have applied and been accepted in the regular manner." For example, colleges A and B have agreed to honor certificates purchased under Independent 529 Plan.   College A has a tuition cost of $30,000 for this current year and College B, $10,000. A person who makes a $10,000 contribution into Independent 529 Plan this year would receive tuition certificates that would cover 33.3% of a year's tuition at College A or a whole year at College B, regardless of how high tuition may be at the time the student eventually chooses to use the certificates.

The purchase of a "tuition certificate" does not guarantee admission or enrollment at a participating college or university, and may have an adverse effect on the beneficiary's eligibility for financial aid. For more information about Independent 529 Plan, visit the website at www.independent529plan.org.