College Savings Plans

Start saving for college now

U.Plan Prepaid Tuition

A prepaid tuition program that offers tax advantages and lets you save for college while locking in today's rates.

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U.Fund College Investing Plan

As the MA 529 college savings plan, this plan offers affordability, flexibility, and tax advantages.

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Attainable^® Savings Plan

We are the state sponsor of Attainable^®, the Achieving a Better Life Experience (ABLE) Savings Plan.

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BabySteps Savings Plan

Your child might be eligible to receive a $50 seed deposit into a U.Fund 529 College Investing Plan account.

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Save for college early

Create a college savings plan early

College is an investment, and it's important to start saving for it as soon as you can. Use our College Planning Tool to create a personal strategy to get started with college savings plans and pay for your child's higher education costs. Record your current college savings plan information, project your future college expenses, and receive guidance on creating a college savings plan that works for your family.

College Planning Tool

Saving for College Webinar

Watch our pre-recorded webinar on saving for college to learn how to select a savings plan, the minimum amount needed to set up an account, and valuable tax benefits to saving.

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It's never too late to start a college savings plan

There are certainly advantages to beginning early on in your child's life. Our chart below illustrates the benefits of beginning to save when your child is young.

Kindergarten

3rd Grade

6th Grade

9th Grade

*This is just an estimate and based on a 7% rate of return
**Based on the 10th edition of the Fidelity College Savings Indicator Study

College Savings FAQs

What is a 529 college savings plan?

A 529 college savings plan is a designated account in which individuals can save for the education expenses of an assigned beneficiary. 529 plans offer tax advantages, including no tax on interest earned as long as earnings are used for qualified education expenses, and can be used at any eligible college or university in the country. The Massachusetts 529 plan is the U.Fund College Investing Plan.

How much should I save for college?

The amount you put away every month into your college savings account should be based on your personal financial situation and the projected cost of college when your child will attend. We have an 11-step checklist that can help you determine the amount your family can start to save on a regular basis. View that list here.

Are there 529 withdrawal penalties?

You may withdraw funds from your 529 account for any qualified education expenses. If you withdraw funds for any additional costs, you will need to pay taxes on your earnings of the amount withdrawn and will incur a 10% penalty on those earnings. You can learn more about 529 withdrawal penalties here.

What is the best way to save in your college savings plan?

If possible, it's helpful to set up automatic, regular deposits into your college savings account, as this will ensure that you're saving on a regular basis. Most 529 plans, including the U.Fund, allow you to easily connect your bank account to the plan and set up these automatic deposits. As well, some families choose to add to their 529 accounts when they receive a large influx of income, such as a tax refund or bonus at work.

When should I start my college fund?

It's never too late to start saving for college, as every dollar you put away is a dollar that you won't have to borrow (and pay back with interest) later on. But there are advantages to starting to save for college early, and we recommend that families start saving as soon as a child is born, or even earlier. You can learn more about the advantages to starting your college savings fund in your child's early years in our presentation here.

Can I save in multiple college savings plans?

You can definitely save in different college savings plans at the same time. Many families in Massachusetts choose to save in both the U.Plan Prepaid Tuition Program and the U.Fund 529 College Investing Plan. The U.Plan allows families to lock in current rates on tuition and mandatory fees, so they use their U.Plan savings for those costs. Putting additional funds into a U.Fund account allows families to save for other expenses, such as food and housing, books, and supplies.

What is the impact of saving for college on financial aid?

Fortunately, saving for college has a minimal impact on a student's eligibility for financial aid. The college financial aid formula only assumes that, at most, 5.6% of college savings will be used for college costs, so the remaining 94.4% is protected and essentially, ignored. That means that families who have saved for college can still receive a significant amount of financial aid, even if they've saved diligently over several years.

What's the difference between a college fund vs a savings account?

A savings account is a bank account that holds your money while typically earning interest. While a bank account can certainly be used to save for college, it differs from a dedicated college fund, such as a 529 investment plan or a prepaid tuition plan. These college savings plans are specially designed to be used for college and provide added benefits when used as intended.

Are college savings plans tax deductible?

Many states, including Massachusetts, offer a tax deduction for contributing towards a college savings plan. Massachusetts residents saving in the U.Fund or U.Plan can claim a MA state income tax deduction of up to $1,000 for single filers and up to $2,000 for married persons filing jointly.