BOSTON--(BUSINESS WIRE)--This holiday season, why not help your loved ones pay for a college education? For most parents of college-bound children, a contribution to a college savings account is a welcomed gift. MEFA has partnered with Gift of College, a platform that allows friends and family members to contribute to a 529 college savings plan (or ABLE account) or help pay down student loans through gift cards that are made available at CVS stores across the Commonwealth. Gift cards may also be purchased online at giftofcollege.com.
The new U.Fund Gift of College Card is the perfect gift for children of any age, expectant parents, college graduates, or individuals with an ABLE account, such as the Attainable® Savings Plan. Available in amounts between $25 and $200 at CVS locations across Massachusetts, the gift card is easily redeemed in a college savings or ABLE account or applied toward a student loan balance.
“Gift cards are a popular choice for consumers and now they can be used to easily contribute money to a loved one’s college savings account. We have heard from parents that a gift card would be appreciated because any help toward paying for costs related to future education expenses is a welcomed one. A MEFA U.Fund Gift of College Card will be a gift appreciated by both students and parents,” said Thomas Graf, Executive Director of MEFA, the Massachusetts Educational Financing Authority.
In a recent Fidelity Investments* survey, 74% of parents say they would welcome a contribution to their child’s college savings account; 62% would even prefer it.
In addition to families, the MEFA U.Fund Gift of College Card is also an ideal gift for:
- Expectant parents, who after the birth or adoption of their baby, will be eligible for a $50 deposit from the BabySteps Program into a U.Fund 529 account within the first year
- College graduates, who can use the gift card to pay down a student loan balance
- Individuals with an ABLE account, a tax-advantaged savings program that helps people with disabilities and their families pay for disability-related expenses
A Case for Making Saving a Good Habit
While gift cards are a way to help family members and friends pay for expenses such as college tuition, fees, housing, food, books, and more, they also help lessen potential college debt. Every dollar saved for college could mean one less dollar borrowed that needs to be repaid with interest.
Families saving with the MEFA U.Fund 529 College Investing Plan or the MEFA U.Plan Prepaid Tuition Program have an added benefit: savings allocated to their accounts by December 31st may qualify for a 2024 Massachusetts state tax deduction.
Recipients can redeem the Gift of College Card funds into a 529 colleges savings account, a student loan account, or an ABLE account online at giftofcollege.com. Learn more about the U.Fund Gift of College card here.
About the MEFA U.Fund
The MEFA U.Fund 529 College Investing Plan allows families to save for college with tax-free earnings and tax-free withdrawals when used to pay for qualified educational expenses. There is no minimum contribution needed to open an account. The MEFA U.Fund has been available to families for 25 years, and families have saved over 10 billion dollars with the U.Fund. The U.Fund was named one of the top five 529 plans in the country by Morningstar in 2024. It is an affordable, flexible, and powerful way to save for education expenses. Funds from 529 accounts may also be used for K-12 tuition expenses (up to $10,000 per year) and for expenses related to apprenticeship programs. Unused money left in a 529 account may later be rolled over into a Roth IRA. To learn more about the MEFA U.Fund, visit fidelity.com/ufund.
About the MEFA U.Plan
The U.Plan Prepaid Tuition Program allows families to prepay college tuition and mandatory fees at over 70 public and private colleges and universities across Massachusetts while locking in current prices. As one of the most stable and reliable prepaid plans in the nation, the U.Plan has no fees, no Massachusetts state or federal taxes on earnings, and also qualifies Massachusetts residents for the college savings state tax deduction. To learn more about the U.Plan, visit mefa.org/uplan.
About Attainable®
The Attainable® Savings Plan provides a means for individuals with disabilities and their families to save in a tax-advantaged account for health and personal care expenses. Eligible individuals can save up to $18,000 a year and still receive disability benefits. Investment earnings and withdrawals are free from federal taxes when used to pay for qualified disability expenses. To learn more about the Attainable® Savings Plan, visit mefa.org/attainable.
MEFA is a state authority, not reliant on state or federal appropriations, established under Massachusetts General Laws, Chapter 15C. MEFA's mission, since its founding in 1982, has been to help Massachusetts students and families access and afford higher education and reach financial goals through education programs, tax-advantaged savings plans, competitive loans, and expert guidance. All of MEFA's work aligns with the ever-present goal to support the independence, growth, and success of Massachusetts students and families. Visit mefa.org to learn more.
