The Baccalaureate Education System Trust (BEST) was created by the Tennessee General Assembly for the purpose of providing Tennessee families with a means to save for their children's future college education costs. This is accomplished through two different 529 programs. These programs are qualified tuition programs under Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996. The main advantage of saving with a 529 plan is that earnings are exempt from federal income taxes when the funds are withdrawn for qualified education expenses.

The first 529 program is the BEST Prepaid Plan, which allows individuals to purchase "tuition units". These "tuition units" increase in value based on the weighted average tuition increases at Tennessee's four-year public universities.

The second 529 program is the Path2College 529 Plan. BEST contracted with the Georgia Higher Education Savings Plan (GHESP) to promote the Path2College 529 Plan in Tennessee. The Path2College 529 Plan offers seven investment options ranging from conservative to aggressive and a low annual asset based fee.

Further information about both programs is available by clicking on any of the appropriate menu options or web links found on this page.

• The BEST Board of Trustees convened on July 13, 2010, to set the new weighted average tuition value and purchase prices for the upcoming 2010 - 2011 academic year. Click here to view a customer letter regarding the new rates adopted by the board.
  
  
• New law passed to enable Tennessee to offer an incentive to encourage families to save for college: Click here to view the Public Chapter. More information regarding program rules and eligibility will be available in the future.
  
  
• Unit purchase price from August 1. 2010- December 31, 2010 is $76.84. BEST units must be on the account for two calendar years before they may be withdrawn for qualified higher educational expenses.
  
  
• The per unit payout value is $65.57 from August 1, 2010 - July 31, 2011.