Paying for college

[#1]

How does the "collect a check for college expenses" work?

Is the option of "collect a check for college expenses" tax deductible?

For the option of "collect a check for college expenses," are there any fees that the UPromise member will be responsible for?

(ex. Fees similar to the $1 charge on the UPromise registered credit card.) 

Is there minimum point requirements before UPromise will issue a check?

What are the restrictions on cashing the check? Is the check restricted to UPromise partnered companies?

Message Edited by amo on 01-25-2009 03:26 PM

Message Edited by amo on 01-25-2009 03:27 PM

[#2]

I'd like to know that too, because I am totally lost as to how it works.......or even doing a bank transfer

that way it goes quicker after being processed to your checking, 529 savings plan, or something along those lines.

[#3]

Amo, good question.  Here's the answer directly from our Customer Care department:

To take a withdrawal you must fill out a withdrawal form that can be found on www.upromise.com/withdrawalform. There is no fee for taking a withdrawal but the withdrawal must be a minimum of $1.00. Members do not pay taxes on a withdrawal. The withdrawal check can be treated as any check you'd receive and can be treated as such, cashed at your bank.

If you other questions about this Customer Care is available at 1-888-434-9111 Monday thru Friday 9:00 AM to 9:00 PM Eastern Time. 

Thanks,

Jeff

[#4]

Churchboy329, please see my response to amo regarding the withdrawl question.

Thanks,

Jeff

[#5]

Jeff, thank you for the information you provided.  I wonder if I might ask some more questions of you!  I'm a brand new

member and am having some difficulty finding information around the site.

First, as a adult with no children, who already has a degree, I joined simply to earn money towards taking additional college classes.  Therefore a 529 is not appropriate, so I assume I will just request a check when the time comes.  I'm curious as to why this money would be non-taxable -- is that because it's simply a non-interest account where I am storing the money that I saved from using what amounts to "coupons" -- in other words, I'm saving my own money rather than being given money from an outside party?  I can't think of any other reason it would be non-taxable, since Upromise really has no proof as to what I would use the check for.

I was also wondering why the "request a check" option does not seem to appear anywhere obvious on the site -- I can get there through the direct link you provided in your post above, but I have not been able to find it myself on any part of the website.  I'm also quite surprised to find that:  the member has to mail a paper form; payments are only processed quarterly; and it can take 12 weeks to get the payment.  To be honest, it seems as though Upromise is deliberately making it difficult to get a payment via check.  I understand Upromise is for-profit, but it seems excessive to keep the money that long, and I assume that Upromise is itself earning interest on all that money sitting there.

I don't mean to be adversarial -- I'm just trying to make sure I understand how this all works before I actually start using it, and I'm feeling a bit uncertain about it now that I've joined.  I have to admit that I'm also surprised that one needs to make a phone call to close the Upromise account.  That seems like the old days of AOL when nobody could figure out how to cancel their service.

Again, apologies if I seem argumentative.  I just want to make sure I'm really comfortable with this before I actually use it.

Thank you for any information you can provide!

[#6]

Hello, I am new to this site as well, I am so glad you have asked all these questions because I myself am pretty concerned. I received the Upromise site from salliemae who I am doing my college loan with and I thought it was an excellent idea. Im having second thoughts esp. since I see a mod hasn't gotten back to you since the end of April. I even sent out invitations for my family to join in my behalf, I'm scared don't want to see them get into something fraudulent. Not that I'm saying Upromise is, I'm just a little scared is all. How is everything working out with your account?

[#7]

amysisson, I'm sorry I overlooked your post.  And thanks very much to acetrulo1 for pointing that out.

While it's long over due, here are some answers to your questions.  First, you're absolutely right.  We need to make the "request a check" option easier to find.  To address that, on 7/26 we're launching a brand new page devoted to what members can do with their Upromise savings along with easy access to make these requests -- pay down a loan, invest in a 529, transfer savings to family and friends, and collect a check.

Until that page becomes available in a few weeks, please click here to access the form to request a check.

Regarding the money being non-taxable, yes, that's the case as it's not considered to be income.

And lastly, yes, the process over here does limit withdrawals to four times per year.  One small change to know about it is you can now fax in the request if it's under $200.  The number for that is 617-559-2481. 

If you have any other questions I'll be sure to respond much quicker next time.  Otherwise, I appreciate your concerns and hope you give the service a chance.

By the way, when I joined Upromise I also was out of college but in graduate school and without any children.  This was well before I started working here.  My thinking was the same as yours -- use it for other classes.  And a few years and a couple of children later, my kids are now listed as the beneficiaries on my Upromise account.  How quickly things change.

Thanks,
Jeff