Frequently Asked Questions

Can I afford MPACT?
With MPACT, you can lock in the price for your child’s college tuition today regardless of future tuition increases. MPACT is affordable. You can purchase an MPACT plan with a one-time payment, annual payments, monthly payments, or a partial down payment followed by monthly payments.

Is MPACT guaranteed?
If you’re shopping around to find the best option to save for your child’s future education, MPACT is the only prepaid tuition plan available that is guaranteed by the State of Mississippi . MPACT does not guarantee admission to college. Students must still meet the requirements for college admission.

Is MPACT flexible?
You can use MPACT for community college, university/senior college, or a combination, from one year up to five years. MPACT benefits can be transferred to other children in the immediate family, including first cousins. There’s no hurry to decide which college is best for your child. You do not have to notify MPACT of the college to be attended until sixty days before the student enrolls or registers for college. You can even transfer from one college to another.

Who is eligible for MPACT?
Any child in Mississippi age 18 or younger and not yet in college at the beginning
of an MPACT enrollment period is eligible. Either the purchaser or the beneficiary must be a Mississippi resident. MPACT plans can be purchased by family, friends, corporations, or nonprofit groups.

What are the tax benefits?
Payments you make for your child’s MPACT plan are deductible for Mississippi income tax purposes. Earnings from MPACT are exempt from federal and state income tax. Consult your professional tax practitioner for detailed information.

How will MPACT pay tuition benefits?
The beneficiary listed on the MPACT contract will receive information on using MPACT benefits in the spring of his/her projected college enrollment year. When a student has been accepted at a college or university and properly identified as an MPACT student, the school will bill MPACT directly for the payment of tuition and mandatory fees.  For in-state public universities and colleges, MPACT will pay the in-state tuition rates for tuition and mandatory fees; for out-of-state or private institutions, MPACT will pay a rate equivalent to the weighted-average tuition and mandatory fees at Mississippi public colleges and universities.  MPACT will make payment directly to the school.  The MPACT contract 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. 

Does my child need to notify MPACT of his/her school choice when they plan to attend college?
MPACT only requires notification of a beneficiary’s intent to enroll at an out-of-state or private institution.  This notification must be received 60 days prior to the child’s enrollment at their institution.  An Intent to Enroll form will be included in the packet sent to the beneficiary in the spring of his/her projected college entrance year.  This form may also be found in the Forms section of our website. For attendance at in-state public college or university, the student will need to notify the school’s billing office of their intent to use MPACT benefits.  You do not need to notify MPACT if the student decides to postpone his college enrollment.  The beneficiary has up to ten years from their projected college enrollment date to use MPACT benefits.

What if my child wants to go to an out-of-state or private institution?
If the MPACT beneficiary enrolls in any private or out-of-state institution accredited by one of the regional accreditation agencies, MPACT will pay an amount up to, but not in excess of, the average tuition and mandatory fees set at public universities or public community colleges in the State of Mississippi.  In addition, a $25 administrative fee is charged the first academic term of attendance at each private or out-of-state school, per transfer. These rates are adjusted prior to the start of each school year.  The most current rates are always available here on this website. 

For the 2008-09 academic year, the payment amounts are:

Are MPACT beneficiaries exempt from paying out-of-state tuition rates at Mississippi’s public colleges and universities?
A beneficiary is considered a resident for purposes of tuition regardless of the beneficiary’s residence at college enrollment.  However, effective with MPACT contracts opened during the 2003 enrollment period or later, this provision only applies to nonresident beneficiaries if (a) the original purchaser was the parent, grandparent or legal guardian of the beneficiary, or (b) the beneficiary was a resident of Mississippi at the time the MPACT contract was purchased.

What happens if I purchase a university contract but my child goes to a community college or vice versa?
MPACT will pay the full community college tuition and the purchaser of the account will be entitled to a refund of the difference between the weighted-average university tuition in that year and what MPACT actually pays the community college.  In cases where the student has a community college contract but attends a four-year university, MPACT will convert the community college hours into university hours based on the then current relative costs and pay the tuition.  This results in fewer hours on your contract, but enables MPACT to pay your university tuition until benefits are exhausted.

What if my child decides not to attend college or earns a scholarship?
If your beneficiary receives a full scholarship which covers tuition and mandatory fees, MPACT benefits can be held for future use or refunded to the purchaser.  The amount of the refund is based on (1) the current cost of in-state tuition and fees at the Mississippi public institution your beneficiary is attending or (2) the weighted-average tuition and fees at Mississippi public institutions if this child is enrolled at a private or out-of-state institution.  Refunds are made to the purchaser of the prepaid tuition plan.  In order to process a scholarship refund, a request signed by the purchaser and documentation of the scholarship must be provided to MPACT on a semester-by-semester basis. 

If you receive a partial scholarship for tuition and fees, MPACT benefits can be used to cover the tuition and fees not paid by the scholarship.  If the school invoices MPACT for a reduced amount of tuition and fees, the purchaser can request a refund for the difference between the invoiced amount and the amount available under the contract for that semester.  In order to process a scholarship refund, a request signed by the purchaser and documentation of the scholarship must be provided to MPACT on a semester-by-semester basis.

If you decide you will not need your MPACT tuition benefits, your contract can be transferred to another family member or you may elect to cancel your contract.  Should you cancel your MPACT contract, you will be entitled to a refund of the amounts paid into the program, less applicable fees and earnings calculated on the remaining balance. 

How will having an MPACT contract affect the beneficiary’s ability for financial aid? 
Tuition prepayment plans are currently excluded from being reported as an asset on the Free Application for Federal Student Aid (FAFSA).  Instead, federal law requires that KAPT benefits be treated as a financial resource of the beneficiary for federal need-based financial aid, which may result in a reduction of aid eligibility.  However, legislation currently passed by Congress will treat tuition prepayment plans as a “parental asset” on the FAFSA form effective July, 2006 – like 529 savings plans are currently treated.  The Department of Education will soon issue guidance on how these changes will be implemented within the school’s financial aid offices.  The receipt of MPACT benefits should not impact the beneficiary’s qualification for or receipt of merit-based financial aid.  You should contact the school’s financial aid office to determine the impact you MPACT contract may have on eligibility for financial aid.

Are MPACT contracts transferable?
Yes.  MPACT contracts are transferable within the immediate family of the beneficiary.  If the eldest child obtains a scholarship or decides against going to college, for example, his or her contract could be transferred to a younger sibling. Immediate family includes:  brothers, sisters, half brothers, half sisters, step-brothers, step-sisters, and legally adopted brothers and sisters.

Mississippi’s Institutions of Higher Learning
Public Four-Year Institutions
Alcorn State University (www.alcorn.edu)
MS University for Women (www.muw.edu)
Delta State University (www.deltastate.edu)
MS Valley State University (www.mvsu.edu)
Jackson State University (www.jsums.edu)
University of MS (www.olemiss.edu)
MS State University (www.msstate.edu)
University of Southern MS (www.usm.edu)

Public Two-Year Institutions
Coahoma Community College (www.coahomacc.edu)
Meridian Community College (www.meridiancc.edu)
Copiah-Lincoln Community College (www.colin.edu)
MS Delta Community College (www.msdelta.edu)
East Central Community College (www.eccc.edu)
MS Gulf Coast Community College (www.mgccc.edu)
East MS Community College (www.eastms.edu)
Northeast MS Community College (www.nemcc.edu)
Hinds Community College (www.hindscc.edu)
Northwest MS Community College (www.northwestms.edu)
Holmes Community College (www.holmescc.edu)
Pearl River Community College (www.prcc.edu)
Itawamba Community College (www.iccms.edu)
Southwest MS Community College (www.smcc.edu)
Jones County Junior College (www.jcjc.edu)

The MPACT program applies to these public colleges and universities.

The benefits may be transferred to the following private in-state colleges as well as out-of state colleges and universities.

Private Four-Year Institutions
Belhaven College (www.belhaven.edu)
Rust College (www.rustcollege.edu)
Blue Mountain College (www.bmc.edu)
Tougaloo College (www.tougaloo.edu)
Millsaps College (www.millsaps.edu)
William Carey College (www.wmcarey.edu)
MS College (www.mc.edu)