Coming soon: An easier way to send tuition payments | American Funds

News

May 29, 2019

Coming soon: An easier way to send tuition payments


You asked us to make paying tuition easier, and we listened. Effective July 1, 2019, you’ll be able to go online and send CollegeAmerica® funds directly to your college or university.

This new feature means you won’t have to call, send in a form or send a personal check to pay for qualified education expenses. Once you've completed your withdrawal online, we’ll mail the payment right to your college for you. You may also provide a student identification number, which we will include on the check, to ensure the payment is applied correctly.

If you haven’t already accessed your account online, take a few minutes to register your account, so you’ll be ready to use this feature the next time you pay tuition or other eligible expenses.

Note: This new functionality on our website will be available only for withdrawals sent to eligible higher-education institutions.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. 

Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. 

If withdrawals from 529 plans are used for purposes other than qualified education expenses, the earnings will be subject to a 10% federal tax penalty in addition to federal and, if applicable, state income tax. State tax treatment of K-12 withdrawals varies. Please consult your tax advisor for state-specific details.