Planning for College
The Michigan Education Savings Program (MESP) can help you start saving for a college education today.
For most families, saving enough to pay for the costs of higher education may seem overwhelming. However, with proper planning, funding a college education can be easier to achieve. MESP has tools and resources that can help set your plan into motion today.
10 Simple Steps to help you set up a plan:
- Set your goals for saving for your child or loved one's college education (i.e. pay for 4 years of college expenses; save a certain amount for each child; match half of the cost of college).
- Use our calculator to estimate how much you need to save to meet your goals.
- Consider other assets you may have already set aside (UGMA accounts, savings bonds, Education IRAs).
- Research all ways to save for college (financial aid, scholarships, loans and savings).
- Start maximizing your tax benefits today by investing with MESP. It’s easy to start and simple to save.
- Set up an automatic contribution plan or payroll deduction (if your employer allows) to help accomplish your goals that much faster.
- Revisit your college savings goals annually to stay on track.
- Involve your child or loved one so they understand the meaning of your investment.
- Encourage others to help.
- For Michigan taxpayers, remember your contributions to a MESP account may be state tax deductable at tax time! Consider reinvesting any potential tax refund in your MESP account.
The gift of a college education for a child or loved one can last a lifetime. A college education can open doors to future economic success. Statistics show that a median income for someone with a bachelor’s degree is 74% higher than the median income for someone with a high school diploma. This can amount to over $800,000 more in income over a working lifetime.
- Set your goals and start saving
- Learn how much you need to save
- Gift a college education today
- We're here to help
1Table 3. Median Earnings for Workers Aged 25 and Over by Educational Attainment, Work Status, Sex, and Race and Hispanic Origin: 2007 (Earnings in dollars) Educational Attainment in the United States: 2007, US Census Bureau, January 2009