With the original closing several days away, the Virginia College Savings Plan announced that it is extending the deadline until March 15 for individuals and families to lock in their cost of future tuition and mandatory fees at Virginia's public colleges through the state's tax-advantaged Virginia Prepaid Education Program (VPEP).

VPEP's three-month enrollment period was slated to close at the end of February but increased demand this year resulted in an extension of the deadline through Sunday, March 15. Online enrollment is available through the 15th at Virginia529.com and completed VPEP applications postmarked by that date will be accepted, as will applications dropped off at the VCSP offices at 9001 Arboretum Parkway in Richmond.

"College tuition and fees have increased dramatically in recent years. VPEP is designed to provide some relief by providing certainty to at least a part of the future cost of higher education," said Mary G. Morris, Executive Director of the Virginia College Savings Plan.

"VPEP contract sales are very strong this enrollment period – running almost 15% ahead of last year's contracts through the middle of February," Morris added. "In these uncertain economic times, interest in all Virginia 529 programs is up - by existing account owners as well as those who are not yet saving for college with the Virginia College Savings Plan. The unique characteristics of VPEP are particularly appealing to Virginia residents."

VPEP contracts, available for newborns through ninth graders, cover tuition and mandatory fees at Virginia's public colleges and universities. VPEP contracts also may be used at technical schools and public and private institutions across the country and, in certain cases, around the world, though full coverage of tuition and fees at those schools is not guaranteed.

As with Virginia's other 529 college savings programs, money invested in VPEP grows tax-free and remains tax-free if used for qualified higher education expenses. Account owners filing Virginia income tax returns also may deduct up to $4,000 per account each year beginning January 1, 2009 ($2,000 for 2008) until all contributions are deducted. The $4,000 per-account limit does not apply to account owners age 70 and above.

Prices for VPEP contracts are based on the child's age and the number and type of years purchased. Contracts may be paid in a lump sum or in installments. A one-year community college contract for an infant, for instance, is available for $34 a month on an extended payment. A lump sum tuition and fee payment for an infant costs from $3,695 for a one-year community college contract to $45,136 for a four-year university contract.

For more information, call the Virginia College Savings Plan toll free at 1-888-567-0540 or look online at Virginia529.com.