PA GSP

Know if You're Saving Enough, and Keep Track of Your Progress

The GSP helps you know how much you need to save and how close you are to your savings goal by having you choose a Tuition Level when you enroll. You may choose from a wide range of Tuition Levels that correspond to the type of school that you want to save for.

Most participants in the GSP pick one of the following average Tuition Levels:

PA Community Colleges Average, based on Pennsylvania's 14 community colleges
PA State System of Higher Education Average, based on 14 universities that comprise the State System of Higher Education
PA State-Related Universities Average, based on the four state-related universities: the University of Pittsburgh, Penn State University (including the Pennsylvania College of Technology), Temple University and Lincoln University
Private Four-Year College Average, based on private four-year colleges
Ivy League School Average, based on the eight Ivy League schools, including the University of Pennsylvania

Or, if you or your child has an eye on a specific Pennsylvania publicly funded school, you may choose to save at that particular institution's Tuition Level.

Each contribution you make to your account is converted into GSP Credits at the Tuition Level you select. Your contribution is divided by the GSP Credit Rate for your Tuition Level which yields the number of GSP Credits attributable to that contribution. Each time you make a contribution, this calculation is made and the number of GSP Credits accumulates. For most four-year colleges, 96 GSP Credits will cover four years of tuition; for community colleges, you generally would need 60 GSP credits for an Associate's Degree. The following chart estimates how much you may be likely to need to save each month for 18 years to cover tuition.

How much should I save for tuition?

If your selected Tuition Level is...	Your monthly contributions should be:
PA Community College Average	$33.93
PA State System of Higher Education Average	$150.36
PA State-Related Universities Average	$366.02
Four-Year Private College Average	$712.67
Ivy League School Average	$1,052.24

Assumes annual tuition inflation projections for each type of school: Community Colleges, 5.0%; State System of Higher Education, 6.0%; State-Related Universities, the inflation rate begins at 5.80% and rises to 7.4% over the displayed period; Private Four-Year Colleges, 7.0%; and Ivy League Colleges, 7.0%. Although these projections are based on historical and projected rates of tuition inflation at each type of institution, there can be no assurance that they will accurately reflect future increases. Projected tuition rates do not represent actual tuition costs at a specific school. Assumes contributions equal to 60 GSP Credits at the Community College Average Tuition Level and 96 GSP Credits for all other Tuition Levels. Monthly contributions start September 2007 and continue through August 2025. Results will vary based on when contributions start and how long they continue. Source: Tuition inflation projections and calculations provided by Actuarial Resources Corporation.

Additional GSP contributions would be needed to cover other qualified expenses, such as mandatory fees, room & board, or books. While few people can save enough to cover the entire cost of college, whatever you save now will reduce what you have to pay or borrow later. The important thing is to start.

You don't have to worry that the Tuition Level you select locks your child into attending a specific school or that you'll make a wrong choice. You can change the Tuition Level at any time, and the change will be made retroactive for each contribution made to the account.

Your Tuition Level also determines your earnings rate*. When used for college qualified expenses, the value of your account will have increased at the same rate as tuition increased at your selected Tuition Level.

Click here for the 2007-2008 Guaranteed Savings Plan Rate Schedule, which gives the GSP Credit Rate for each Tuition Level.

* View information about the guarantee and its limits.