McRae: Legislative updates for Mississippi College and Career Savings

Note: The following article is provided by Mississippi State Treasurer David McRae. Opinions expressed are those of the author.

By Treasurer David McRae

Americans owe about $1.6 trillion in student loan debt, according to Pew Research. Now, I want to be clear: That’s a hefty sum that is difficult for many families to manage, but I don’t believe it’s right to ask taxpayers to take on the costs others have incurred. Just think how unconscionable it would be if the government forced you to pay off your neighbor’s credit card bill! In my opinion, it is just as outrageous to ask you to pay off your neighbor’s student loans. 

Mississippi, however, offers families a better way to prepare for the cost of a college degree – one that offers benefits regardless of whether you want to become a plumber, electrician, accountant, or doctor.

When families invest in a MACS account, they can begin earning tax-advantaged interest on money that can be used for vocational training, laptops, classroom supplies, tuition and fees, doctorate programs, and more. This flexibility is what gets a lot of families excited, but the affordability isn’t anything to scoff at too. Accounts can be opened with a contribution of just $25, and more can be put in every month so families can see their savings grow.

The MPACT program is another option. This one costs a bit more at the onset but can help protect families from years of tuition rate hikes. More specifically, MPACT allows families to lock in today’s tuition rates and pre-pay college. MPACT open enrollment is now through May 31. Learn more at treasury.ms.gov/MPACT.

It’s important to note that it’s not just parents who can open a MACS or MPACT account. Grandparents, friends, and relatives can do so too. For MACS, the person opening the account must be a U.S. citizen. For MPACT plans, they must also be a Mississippi resident and either a parent or grandparent. There are some important benefits to having plans that are owned by someone outside the student’s immediate family.

In fact, Congress passed the FAFSA Simplification Act in 2024. Under the bill, a MACS or MPACT plan owned by someone other than the student’s parents does not count as student income, removing a massive barrier and further expanding the value of these important programs!

Another important improvement passed in 2022 called the SECURE Act. This bill allows families to roll up to $35,000 in unused MACS or MPACT dollars into a Roth IRA over the course of five years. The rollover is tax and penalty free as well!

I encourage you to take advantage of one of these plans if you have a young person in your life as a means to reduce or avoid student loans altogether. For help, please contact my team at (601) 359-5255 or email at CollegeSavings@treasury.ms.gov.

Mississippi Treasurer David McRae is the 55th Treasurer for the State of Mississippi. In this role, he helps manage the state’s cash flow, oversees College Savings Mississippi, and has returned more than $100 million in unclaimed money to Mississippians. For more information, visit Treasury.MS.gov.