Q&A with Treasurer David McRae | MPACT: Is it right for my family?

Earlier this month, your State Treasury re-opened enrollment for the Mississippi Prepaid College Tuition program – or MPACT. Because of strong market growth and a new investment strategy, we were able to open without the typical annual rate increase, giving families another year to lock in. But what is this program? How does it work? And how do you know if it’s right for your family? These are questions I get often, so let me take a stab at answering them for you now.

What is MPACT?

MPACT is a 529 college savings plan offered through the State Treasury. With MPACT, families can lock in tuition rates and prepay their child’s tuition and fees.

What do you mean by “lock in tuition rates”? 

The cost of a college degree seems to only increase each year. In 2021, for instance, seven of Mississippi’s eight public universities increased their tuition by an average of 2.8 percent. With MPACT, you sign a contract today and protect yourself from future tuition hikes.

How much does an MPACT plan cost?

Pricing is impacted by a few factors, including how old your child is, whether or not you’re able to apply a down payment, and how many years of college you’re interested in prepaying.

Where can I use my MPACT plan?

Your plan can be used for any public in-state institution, including community colleges. It can also be used at out-of-state schools, although additional fees may apply.

Do I get a tax break for enrolling?

The payor may deduct from Mississippi taxable income the amount of any payments made under an MPACT prepaid tuition contract in the tax year. Earnings from MPACT are exempt from federal and state income tax when paid to a school by MPACT. But I always advise consulting a tax professional for information specific to your family.

Who can purchase an MPACT plan?

Almost anyone! Many grandparents, for instance, purchase plans for their grandchildren as part of their estate planning.

How long do I have to enroll in MPACT?

The current enrollment period is open until May 31, 2022.

Where do I learn more about MPACT?

Visit to learn more or call my office at 601-359-3600 and a member of my team would be happy to answer any questions you have.