Georgia Higher Education Savings Plan Announces GHESP Futuretrust Program

Rebate Program Offers Additional Savings Opportunities

ATLANTA, Nov. 22 /PRNewswire/ -- The Georgia Higher Education Savings Plan (GHESP), Georgia's Section 529 college savings plan, announced today the launch of the GHESP Futuretrust cash rebate program. In an agreement forged with Mothers Work Inc. (which operates the Futuretrust program), GHESP account owners can now receive cash rebates for purchases at more than 500 online stores, including Apple, Target, Circuit City, Best Buy, The Gap and eToys among many others.*

To enroll in the rebate program, account owners can log on to the GHESP web site -- http://www.gacollegesavings.com/ -- to link their GHESP account to Futuretrust. For every $25 of rebates accumulated, the money will automatically be swept to an investment in the GHESP account.

Early in 2006, account owners will be able to apply for a GHESP Futuretrust MasterCard, which can be used both in-store and online to receive a one percent cash rebate on all purchases made using the card. These rebates will also be swept to an investment in a linked GHESP account as accumulations reach $25.

"With the GHESP Futuretrust Program, we are offering account owners the opportunity to benefit from their normal spending habits," said Chuck Penuel, Director of the GHESP. "The rebate program is another step we're taking to help families save more for college."

Last month, the GHESP reduced its annual management fee charged to participants to 0.78 percent from the previous fee of 0.85 percent. A GHESP account can be used toward tuition and other qualified college expenses such as eligible room and board, books, and fees at colleges in Georgia and nationwide.

Since being launched in April 2002, the GHESP has been highly successful. Assets in the GHESP have surpassed $300 million, and the total number of GHESP accounts increased to over 60,000 as of October 2005. In the past year, assets in the program have increased by over 55% and the number of accounts has increased by almost one-third.

"We are pleased to be working with Futuretrust to provide Georgia families with even more opportunities to save for college," said Sherry Thomas Palmer, of TIAA-CREF Tuition Financing Inc., Program Director for the GHESP. "We will continue to work to provide an attractive plan to help individuals with the best investment one can make in a child's future -- a college education."

GHESP Highlights:

-- State Income Tax Deduction -- Account owners who file an itemized
Georgia tax return may be eligible for an annual state income tax
deduction of up to $2,000 per beneficiary if they qualify based on
income level. Contributions made by April 15 may be deducted on the
preceding year's return for a Georgia tax payer; contributions by an
account owner who is a Georgia tax payer are deductible if the account
owner is the parent or guardian of the beneficiary and the beneficiary
is claimed as a dependent on the parents' or guardians' Georgia income
tax return. To claim the deduction, tax payers must itemize deductions
for federal and Georgia income tax purposes; contributions made by a
Georgia tax payer may be deductible from Georgia taxable income up to a
maximum of $2,000 a year per beneficiary (regardless of whether the
parents or guardians file joint, single, or separate returns) and the
maximum deduction for each beneficiary decreases by $400 for each
$1,000 of federal adjusted gross income over $100,000 for a joint
return or $50,000 for a separate or single return. Rollovers from
another 529 plan do not qualify for the GA income tax deduction.

-- Tax-Free Growth and Withdrawals -- Contributions to GHESP accounts have
the opportunity to grow free from federal and state income tax. Through
the power of compounding, the money invested in a tax-deferred account
can provide greater potential for growth. And withdrawals used for
qualified education expenses, including tuition, eligible room and
board, fees and books will be free of both federal and Georgia income
tax. Please note that the law allowing federal tax-free qualified
withdrawals is set to expire on December 31, 2010. Congress may or may
not extend the law beyond this date. In addition, withdrawals for
qualified expenses are free of Georgia income tax after the account has
been open for one year. Recapture provisions exist for withdrawals
other than qualified withdrawals, even if the withdrawal is tax-free
for federal income tax purposes. Most non-qualified withdrawals are
subject to Georgia and federal income tax, and an additional 10%
federal tax, on the earnings portion of the withdrawal.

-- Investment Options -- The GHESP offers families five investment
options: Guaranteed Option, Managed Allocation Option (also known as an
"age-based" investment option), Aggressive Managed Allocation Option,
100% Equity Option, and a Balanced Fund Option.

-- Low Expenses -- The GHESP has low costs so more of your investment can
go toward education expenses. The low annual asset-based management fee
is just 0.78%.

The program web site -- http://www.gacollegesavings.com/ -- provides complete information and includes on-line enrollment and other on-line services. Information and applications can also be obtained through a customer service center, 1-877-424-4377 (toll free). There are no income or state residency restrictions on who can open an account. Anyone with a valid social security number or federal taxpayer identification number who is U.S. citizen or resident alien may open a Savings Trust Account or be named as a Beneficiary.

For more information about Georgia's Section 529 college savings plan, contact Chuck Penuel at 404-463-0000 or by email at chuckpenuel@otfs.ga.gov.

* TIAA-CREF Individual & Institutional Services, LLC. (TIIS) and its
affiliates neither recommend nor disapprove any products or services
offered by companies participating in the Futuretrust program. TIIS and
its affiliates are not responsible for the content of the Futuretrust
website.

Consider the investment objectives, risks, charges and expenses before investing in GHESP. Please visit http://www.gacollegesavings.com/ for a Disclosure Booklet containing this information. Read it carefully.

Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor. Before investing in a 529 plan, you should consider whether the state you or your designated beneficiary reside in or have taxable income in has a 529 plan that offers favorable state income tax or other benefits that are only available if you invest in that state's 529 plan.

The State of Georgia, its agencies, TIAA-CREF Tuition Financing, Inc., Teachers Insurance and Annuity Association of America and its affiliates do not insure any Account or guarantee its principal or investment return except for TIAA-CREF Life Insurance Company's guarantee to the GHESP under the funding agreement for the Guaranteed Option. Account value will fluctuate based upon a number of factors, including general market conditions.

TIAA-CREF Individual & Institutional Services, LLC, distributor, member NASD, SIPC.