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Program Description

BEST 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 The main advantage of saving with a 529 plan is that earnings are exempt from federal income taxes when the funds are withdrawn for qualified education expenses.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.

 

BEST Prepaid Plan Participant Information

  • BESTTennessee Launches Statewide Coloring Sweepstakes to Encourage Families to Think About Education During College Savings Month

    NASHVILLE, Tenn.— When the Bunton family received a baby gift from a neighbor, they were happily surprised to receive an investment in their child’s future—a gift to the child’s college savings.  The neighbor, who was getting ready to send his son to college, recommended the Path2College 529 Plan for the Buntons, and with his advice, the family started a Path2College plan for their child. more...
  • Unit purchase price from August 1, 2009 - December 31, 2009 was $70.32. BEST units must be on account for two calendar years before they may be withdrawn for qualified higher educational expenses. The per unit price is $72.52 for the period January 1, 2010 - July 31, 2010.
  • The per unit payout value is $61.20 from August 1, 2009 - July 31, 2010.
  • BEST Prepaid Plan Unit Information Letter: Click here to view the letter regarding the current prices for Prepaid Plan tuition units
  • Plan flexibility lets participants decide how much to save and when.
  • The tuition units can be used for college cost at any higher education school in the nation.
  • Saving through BEST frees participants from investment decision concerns.
  • Anyone (i.e. family member, friend, etc) can contribute to a beneficiary's plan.
  • Prepaid tuition units can now be used to purchase computers for college. As such, withdrawals from BEST for computers or computer technology during 2009-2010 will be exempt from federal income taxation. Click here to view the College Savings Plan Network Press Release
  • Investment in the units of the BEST Prepaid program is subject to substantial risk factors including but not limited to that earnings and return of principal of any investment are not guaranteed by the State of Tennessee, the federal government, or any agency thereof. Before investing, consult the section titled "Risk Factors" and your professional tax and investment advisor.

In the Community

Customer Service Representatives are available to speak to businesses, civic groups, schools, PTAs, churches, and other organizations. To arrange to have a speaker at an event, please contact us at (615) 532-5888 or by e-mail at BEST.Office@tn.gov