The program is open to children in the ninth grade or younger if the child or the purchaser is a resident of Virginia. The plan offers a variety of payment options and significant federal and state tax advantages. The 2001 enrollment period for VPEP is from February 1 to May 1, 2001. VEST is a new college savings option where students of all ages can save for all college costs, including tuition, fees, room and board, textbooks, and computers. A participant can open a VEST account with a low initial deposit and continue a savings plan that suits their particular budget and timetable.
Participants can make an initial selection from among seven different investment funds.
VEST enrollment is open all year. Savings generated through the program can be used at colleges throughout the country and, in some cases, overseas. What makes these programs a real standout, however, are the taxa advantages. Earnings grow tax deferred at the federal level, and VPEP and VEST participants can deduct their entire investment from their Virginia taxable income. Students are exempt from paying Virginia state taxes on VPEP and VEST interest and earnings.