It looks like UVA now offers an option to lock in your tuition for 8 semesters. Is there any cost or risk, or is this a no brainer?
You pay more upfront for education, but save money later on. It really depends if you have Prepaid 527 or any other scholarships to determine how much its worth for you.
The guarantee program appears to provide a net savings over four years or 8 semesters (length of program). This savings assumes average tuition increases of 4.2% per year (average increase for the last five years) and the $1,000 step tuition increase that has been added to base tuition for '15-16 and that will be added to '16-17. It seems like there could be an approximate $2,000 savings in total. However, the payment IS higher by about $1,000 the first year. In the second year, you would save about $400; 3rd year savings $1,000 and 4th year savings $1,600. This does not factor in the time value of $ only the absolute savings over the next four years. So, if you can afford to pay more today it looks like you might be better off in the future. Of course, you’ll have to do your own calculations and not rely on mine. But, this is what it looks like to me. I am going ahead and doing it. The signed form is due to UVA financial office on June 1st, 2015.
Note - this program only applies to undergraduate VA residents entering Fall 2015.