ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Sunday, September 1, 1996 TAG: 9609030075
SECTION: VIRGINIA PAGE: B-6 EDITION: METRO
When will the first sign-up period be?
From Dec. 2 to Feb. 28. Future sign-ups haven't been scheduled.
Who's eligible?
Parents of children from newborns to those who haven't finished ninth grade. The child must be a Virginia resident or have a parent who is a Virginia resident.
What is the cost?
The price schedule has not been set, but it will be based on current average tuition and fees at four-year colleges, plus administrative and investment fees.
There will be a separate, lower scale for community colleges. Prices will vary depending on the age of the child - the younger he or she is, the lower the cost. Prices will be announced in November.
Will there be different prices for different four-year schools in Virginia?
No. The four-year price will cover any four-year, state-supported school in Virginia.
How much tuition can you pay for?
Parents can pay for everything from one year of education at a community college or four-year school, to five years at a four-year college. They can also pay for a combination - say, two years of community college and two years at a four-year school.
What payment plans are available?
Parents will have three options: a lump sum, a five-year payout period, or a monthly schedule that can stretch until the child enters college. The longer the payment period, the more the total cost.
Could the plan be transferred to a student's brother or sister?
Yes, if the sibling is younger.
Can parents get refunds if they change their minds?
Yes, but only of the money they put in, not any earnings from the plan. If the student dies or becomes disabled - or earns a scholarship - the state will pay back the principal and interest. ``You never want to provide any disincentive for a child to receive a scholarship,'' said Diana Cantor, executive director of the program.
What happens if a child decides to go to a private college in Virginia or an out-of-state school?
If the student went to the University of Richmond, for example, the state would give the university the tuition payments and interest income, minus administrative fees. But the state would never pay more than the tuition-and-fee total charged by the most expensive four-year public university in Virginia at the time of enrollment.
If the student went to, say, the University of North Carolina at Chapel Hill, the state would give the university the tuition payments and a ``reasonable return'' (as yet undefined), minus administrative fees. The state would never pay more than the average tuition and fees at Virginia four-year schools at the time of enrollment.
The reason for the difference?
``There's a built-in incentive for our kids to stay in Virginia,'' Cantor said. ``We want them to stay productive citizens of the commonwealth.''
Could the child delay going to college?
The payments will be accepted for up to 10 years after the child's projected enrollment in college. Time in the military will not count toward the 10 years.
LENGTH: Medium: 65 linesby CNB