Parents have more time to buy peace of mind about their children's college education.
The Virginia College Savings Plan said yesterday that it is extending the deadline for enrolling in prepaid college-tuition plans by two weeks.
The deadline was set to expire Sunday, capping an annual three-month enrollment window that allows parents of children from newborn through ninth grade to lock in on future tuition and fees at Virginia's public colleges and universities.
Instead, the state plan will accept applications for contracts under the Virginia Prepaid Education Plan through March 15.
The reason? More people want the opportunity to sign up at a time when other ways of saving money for college have been hit hard by the recession.
"It takes some of the worry out, some of the risk out," said Mary G. Morris, executive director of the Virginia College Savings Plan, whose prepaid-tuition contracts ultimately are backed by the state's budget.
Morris said contract sales have been running about 15 percent higher than last year through mid-February, and the agency plans to attend children-related events this weekend, such as the Richmond Kids Expo at Richmond International Raceway, to promote the tuition program.
"We just want more people to have a chance to get in," she said.
Morris said interest also has been running high in the agency's newest and most conservation investment portfolios, CollegeWealth, a plan for investing in tax-free savings accounts and certificates of deposition at a limited number of financial institutions.
The state's college investment programs, allowed under Section 529 of the federal tax code, also are getting a temporary boost from the economic stimulus package just approved by Congress, Morris said. The legislation allows computers to be eligible as a college expense that can be paid without tax consequences under the programs.
Contact Michael Martz at (804) 649-6964 or mmartz@timesdispatch.com.
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