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University of Missouri creates scholarship program for families saving for college through MOST – Missouri’s 529 College Savings Plan

Contact

John Fougere

Chief Communications Officer

University Relations

Nov 13, 2006

Contact: Jennifer Hollingshead

Office: (573) 882-0601

E-mail: hollingsheadj@umsystem.edu

The University of Missouri has created a scholarship program for families saving for college through MOST – Missouri’s 529 College Savings Plan.

The University of Missouri MOST Scholarships will provide 80 scholarships of $500 per year – 20 for each of the four campuses of the University of Missouri – for qualifying students of families who have invested for college through the MOST program.

Dr. Elson S. Floyd, President of the University, said the new scholarships reflect the University’s commitment to ensuring access and affordability to higher education. He was joined for the announcement of the scholarships by Missouri Treasurer Sarah Steelman, whose office oversees the MOST program.

“The University of Missouri is very proud to be a part of this joint effort to make a higher education more affordable for those Missourians who have the greatest financial need,” President Floyd said. “It is a tremendous loss, not only for the individual but for society, whenever someone cannot realize their full potential because a quality higher education is out of their reach.”

“We have worked hard to develop a truly outstanding state college savings program, and now we are delighted to partner with our excellent University of Missouri system to help families afford college for their children,” Treasurer Steelman said. “We are especially excited that each of the four campuses will be participating because each campus provides a unique educational opportunity for Missouri students.”

MOST - Missouri’s 529 College Savings Plan, is a state-sponsored 529 college savings plan that provides a tax-advantaged way for Missouri families to save for college. MOST accounts can be established for any child with as little as $25. Contributions to MOST accounts – up to $8,000 per taxpayer per year—are deductible from state income taxes*. Earnings on MOST accounts are exempt from federal income taxes when redeemed to cover college costs for qualifying higher education expenses**.

The University of Missouri MOST Scholarships will be available to full-time students in good academic standing at each of the four University of Missouri campuses. Students of families that have had accounts with MOST for at least five years in can qualify. Students can apply annually for the scholarships and could receive scholarships for up to four years.

(Note: the following legal disclaimer is provided to ensure compliance with federal regulations involving the dissemination of information about 529 plans.)

* Contributions to the Plan in a tax year are deductible from Missouri state income tax, but are subject to recapture in subsequent years if you make nonqualified withdrawals or roll over assets to another state’s 529 plan.

** Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

For more information about MOST—Missouri’s 529 College Savings Plan, call 1-888-414-MOST or visit www.missourimost.org to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.

If you are not a Missouri taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.

The Missouri Higher Education Savings Program (the “Program Trust”) is a trust created by the State of Missouri. When you invest in MOST—Missouri’s 529 College Savings Plan (the “Plan”), you are purchasing portfolio units issued by the Program Trust. Portfolio units are municipal securities. The Plan has been implemented and is administered by the Missouri Higher Education Savings Program Board (the “Board”). Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as the Program Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions. The Vanguard Group, Inc., and American Century Investments serve as Investment Managers for the Plan. Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., markets and distributes the Plan. The Plan’s portfolios, although they invest in mutual funds, are not mutual funds.

Investment returns are not guaranteed, and you could lose money by investing in the Plan.

Contacts:

Scott Charton of UM, 573-882-9724 or (cell) 573-864-9672;

Mark Hughes of the Treasurer’s Office, 573-751-7595 or (cell) 573-356-9490.