JACKSON, Miss. (WJTV) – As the cost of higher education rises, Mississippi has a solution to help parents lock in tuition and fees for their children in the future.
The Mississippi Prepaid Affordable College Tuition Plan (MPACT) is offered through the State Treasury. Though enrollment in the plan does not guarantee college admission, it can be used for public community college, university/senior college, or a combination, from one year up to five years. MPACT pays a rate equivalent to the weighted average tuition and mandatory fees at Mississippi public colleges and universities for private/out-of-state institutions.
The MPACT enrollment period is open from September 1 to May 31. Enrollment for newborns, however, is open all year. Pricing is impacted by the current age of the future college student, whether or not one can apply for a down payment, and how many years of college one wants to pay for in advance.
For Semester Institutions (including mandatory fees), the 2022-23 academic year rates are:
- University: $301.23 per credit hour
- Community/Junior College: $121.87 per credit hour
For Quarter Institutions (including mandatory fees), the 2022-23 academic year rates are:
- University: $200.82 per credit hour
- Community/Junior College: $81.25 per credit hour
The payer may deduct from Mississippi taxable income the amount of any payments made under an MPACT prepaid tuition contract in the tax year. Earnings from MPACT are exempt from federal and state income tax when paid to a school by MPACT. Consult a tax professional for detailed information.
If the beneficiary of the MPACT contract receives a full scholarship, which covers tuition and mandatory fees, MPACT benefits can be held for future use or refunded to the purchaser. MPACT plans are treated as investments in the Free Application for Federal Student Aid (FAFSA). As such, they should be reported as parental investments.
MPACT does not cover the cost of books, lab fees, transportation, orientation fees, room and board, or other fees that are not considered mandatory. Costs not covered by the MPACT contract will be the student’s responsibility.
See the state treasury’s website for more information on how MPACT can be used.