Nevada is one of 12 states with a prepaid college tuition program. Open enrollment for 2019 ends March 31 but anyone who signs up before Thursday, January 31 will be entered into a contest. One person from northern Nevada and one from southern Nevada will win one year of free tuition.
"Our goal is to incent people to come in, start planning for the future, start putting a little money aside now," Zach Conine, D-Nevada State Treasurer said.
The program allows Nevadans to pay for their children's future college education with today's rates.Â
Brandy Lindley-Vance became a mother in October. Now she and her husband are enrolling their daughter, Freya, in the prepaid tuition program, locking in the rate of $224 per credit.Â
"Our decision was that we would start now and then that way it wouldn't be too hefty of a monthly bill," Lindley-Vance said.
The program offers flexibility in payments. People can pay in one lump sum, a five or ten-year plan, or extended monthly payment plan. The Vances chose to pay over the next 18 years, setting Freya up for college in 2017.
"Eighteen years, so many things could happen," Lindley-Vance said. "If down the road, she graduates high school and we're not financially stable for whatever reason at that point, we like that we have that contingency plan in place."
Since 2002, in-state tuition in Nevada has increased an average of nearly 6.6 percent per year. Sixteen years ago, tuition at the University of Nevada and UNLV was $79 per credit. So, parents who enrolled in a prepaid plan back then, are paid substantially less than someone who is paying today's rate of $224. The average cost of tuition and fees is $7,764 per year, and that's expected to rise.
"We all know it's going to be more expensive and in the Treasurer's Office, we like to encourage families just to do the same thing we do, which is invest in future opportunities," Conine said.
The money can be used for universities, colleges and vocational schools. If the child decides to attend school in another state, that money will go towards tuition. If the child decides not to get a higher education degree or certificate, the money can roll over into a sibling's account or the money will be returned to the family.
"We liked that that provided more options down the road," Lindley-Vance said. "So, if she didn't want to go to college and wanted to do something else, we could still have that money available to her."
Freya's prepaid tuition will pay for two years at a community college and two years at a university. She can use all of the money at a four-year university though, if that's what she decides.
People who have prepaid tuition can also receive scholarships and grants to help with other costs.
"Even with the Millennium Scholarship or other scholarships and grants that this prepaid tuition could help supplement that," Lindley-Vance said. "It's not a one or the other scenario."
Conine says higher education is more important than ever, and it will be even more necessary in the future.
"The economy of today requires education beyond what we're getting with a high school diploma, whether it's a trade school or college or university," Conine said.
The Nevada Prepaid Tuition program started in 1998. More than 21,000 people have enrolled in the program.
To enroll, follow this link:Â http://www.nevadatreasurer.gov/Prepaid_Tuition/Prepaid_Home/
