MET is a program that allows parents to prepay for college credits in preparation for when the time comes for their children to go to college. By purchasing a contract, parents can lock in tuition rates at the time of purchase and avoid paying more if the cost of tuition increases.

The MSU website lists an estimated cost of $11,722 for two semesters of 15 credits for incoming freshmen during the 2010-11 academic year.

MET Executive Director Robin Lott said the program does not receive state-appropriated funding. Instead, the program is funded through investments by the Michigan Department of Treasury’s Bureau of Investments after they have been approved by the MET Board of Directors. One percent of the contract price goes toward total administration costs.

Michigan Department of Treasury spokesman Caleb Buhs said the department plays a role in helping to put on the MET program.

“If somebody’s signing up for a contract, we have a staff that handles that (and) handles paying out to universities when payments are being used,” he said.

According to statistics from Buhs, MET has sold about 95,000 contracts since the program’s inception in 1988. Last year at MSU, there were approximately 1,800 MET contracts in use by students.

Each year has set enrollment periods, during which contracts can be purchased, with the current period ending on June 30.

Lott said after the enrollment period ends, the program will experience some downtime until a new contract price is determined.

“The MET Board of Directors has to meet to set a new enrollment period and new contract prices for next year,” Lott said. “But (they) probably won’t meet until fall.”

Lott also said MET was the first prepaid tuition plan in the nation and paved the way for the 529 plan, a nationwide investment plan that encourages saving money for the future.

MSU alumna Ashley Walker said she pays for her school with student loans, but her parents did not plan ahead to pay for her education. She said when she was younger, her parents probably were concerned more with immediate expenses than planning for the future.

“I wish and I think (my parents) wish that they had (set aside money), but it probably wasn’t something that was on their minds at the time,” she said.