Glossary
529 College Savings Plans
 Programs sponsored by the states (or colleges) and recognized under Internal Revenue Code Section 529.
Account Owner The Account Owner is the person who opens an Account with a 529 college savings plan and controls the assets held in the Account.
Beneficiary The Beneficiary (intended future student) is the person designated by the Account Owner whose higher-education expenses will be paid, in whole or in part, using money from the Account. The Beneficiary must be a natural person, and each Account may only have one Beneficiary. Anyone, including the Account Owner, can be a Beneficiary.
Community College Average Tuition Level
For the 529 GSP, the tuition level for which the GSP Credit Rate is based on is the average tuition at Pennsylvania's 14 community colleges: Allegheny County, Beaver County, Bucks County, Butler County, Delaware County, Harrisburg Area, Lehigh-Carbon County, Luzerne County, Montgomery County, Northampton County, Pennsylvania Highlands, Philadelphia, Reading Area and Westmoreland Area.
Contribution This is money put into a 529 account. In the case of the Pennsylvania 529 Guaranteed Savings Plan (GSP), your contribution is converted into GSP Credits at a Tuition Level you select. The growth in the value of each of your GSP Credits is pegged to the rate of tuition inflation at the selected Tuition Level.
Earnings The growth generated by an investment.
Eligible Educational Institution Nearly all colleges, universities, community colleges, law, medical or business schools qualify. Many career or technical schools and schools abroad are eligible as well. The school must be eligible to participate in the federal financial aid programs. For a list of schools, see www.fafsa.ed.gov/FOTWWebApp/FSLookupServlet.
Growth The difference between a contribution and the value of that contribution when withdrawn.
GSP Credit
 For each contribution made to a 529 GSP account, a "GSP Credit" is calculated. GSP Credits are calculated based on the Tuition Level chosen by the Account Owner. Each contribution is divided by the GSP Credit Rate in effect at the time the contribution is made for the designated Tuition Level to determine the number of GSP Credits attributable to the contribution. Each time you make a new contribution this calculation is made and the number of GSP Credits accumulate. Please refer to Disclosure Statement for the methodology used to determine Credit Rates, and the 2008-2009 Guaranteed Savings Plan Credit Rate Schedule.
GSP Credit Rate
 A GSP Credit Rate is the rate set annually by the Department for each Tuition Level. Each GSP Credit Rate is based on the actual tuition at the school or schools comprising the Tuition Level. It may be the same as, more than (that is, have a premium) or less than (that is, have a discount) actual tuition at the school or schools comprising the Tuition Level. GSP Credit Rates have had premiums in the past but have never had discounts. For academic year 2008-09, GSP Credit Rates are the same as actual tuition.

GSP Credit Rates are listed on the Guaranteed Savings Plan Credit Rate Schedule. The GSP Credit Rate is used to determine the number of GSP Credits attributable to each contribution.
Guarantee of the GSP
 In the nowU Pennsylvania 529 Guaranteed Savings Plan, the guarantee that, when used for qualified higher education expenses, your account will keep pace with the tuition inflation at the Tuition Level you choose. If the applicable GSP Credit Rate at the time a contribution is made has a premium, however, your rate of growth will be lower than the actual rate of tuition inflation at your Tuition Level by approximately the rate of the premium. Premiums do not, however, alter the way in which the dollar value of your account is determined. When used for qualified higher education expenses, each GSP Credit will still have the full value of the actual per credit tuition cost. The guarantee means the growth in your savings is tied to the rate of tuition inflation at your designated Tuition Level - not the performance of the stock or bond market.

The Pennsylvania Treasury Department places your money in the Tuition Account Guaranteed Savings Program Fund (the GSP Fund), a separate Fund established for the GSP by the Commonwealth of Pennsylvania. The Department invests the GSP Fund through professional investment managers who buy and sell stocks, bonds, and other investments with the specific goal of seeing that the growth of the GSP Fund meets or exceed tuition increases.

The guarantee is an obligation of the Pennsylvania GSP Fund only. The guarantee is not backed by the full faith and credit of the Commonwealth of Pennsylvania, and is not an obligation of the Commonwealth of Pennsylvania, the Pennsylvania Treasury Department, Upromise Investments, Inc., Upromise Investment Advisors, LLC, or any other party. The GSP is not insured by the Federal Deposit Insurance Corporation or any other government agency.
Ivy League School Average Tuition Level
 For the 529 GSP, the tuition level for which the GSP Credit Rate is based on is the average tuition at the eight Ivy League schools: Brown, Columbia, Cornell, Dartmouth, Harvard, Princeton, University of Pennsylvania and Yale.
Maximum Contributions
 The Maximum Contribution Limit established for the Pennsylvania 529 college savings plans currently calculated based on the current cost of five years of undergraduate tuition, mandatory fees, books and room and board costs at the University of Pennsylvania and two years of graduate tuition, mandatory fees and room and board costs at the Wharton School of the University of Pennsylvania. The Maximum Contribution Limit may be adjusted annually, and may be changed at any time if required by federal tax law.

The Maximum Contribution Limit currently in effect is $368,600. The Maximum Contribution Limit includes the value of all nowU Pennsylvania 529 College Savings Program accounts for the same beneficiary, regardless of who owns the account(s).
Member of the Family
As defined under Section 529 of the Internal Revenue Code, a member of the family of a Beneficiary is a person related to the Beneficiary as follows: (i) son or daughter, or a descendent of either; (ii) stepson or stepdaughter, or a descendent of either; (iii) a brother, sister, stepbrother or stepsister; (iv) the father or mother, or an ancestor of either; (v) a stepfather or stepmother; (vi) a son or daughter of a brother or sister; (vii) a brother or sister of the father or mother; (viii) a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; (ix) the spouse of the Beneficiary or of any of the foregoing individuals; or (x) a first cousin. For this purpose, a child includes a legally adopted child and a foster child and a brother or sister includes a brother or sister by half-blood.
Minimum Contribution The minimum contribution to a Pennsylvania 529 account is currently $25. However, for contributions made more frequently than monthly from automatic payroll deduction or automatic deduction from your bank, each contribution may be less than $25 as long as the total contribution through that method is at least $25 on a monthly basis.
Non-Qualified Withdrawals Amounts in a 529 account can be withdrawn for purposes other than the payment of the beneficiary's qualified higher education expenses at an eligible educational institution. These are called non-qualified withdrawals. For the GSP, the amount you receive may be lower for a non-qualified withdrawal than for a qualified withdrawal. In addition, the federal or state income tax treatment of non-qualified withdrawals will be less favorable.
Premium See "GSP Credit Rate"
Private Four-Year College Average Tuition Level
 For the GSP, the average Tuition Level for which the GSP Credit Rate is based on at four-year private colleges located in Pennsylvania (excluding nursing schools). Although the Private Four Year College Average is calculated by reference to Pennsylvania colleges, contributions designated for this Tuition Level, and the growth thereon, may be applied at any private or out-of-state Eligible Educational Institution, whether or not located in Pennsylvania.
Qualified Higher-Education Expenses
 As defined by the Internal Revenue Code, qualified higher-education expenses include tuition, room and board (with certain limitations), required books, required supplies, required equipment, mandatory fees and special needs services.
Qualified Withdrawal Withdrawals from a 529 account used to pay for qualified higher-education expenses.
State-Related University Average Tuition Level
 For the 529 GSP, the Tuition Level for which the GSP Credit Rate is based on is the average tuition at the four state-related universities: the University of Pittsburgh, Pennsylvania State University (including its affiliate, the Pennsylvania College of Technology), Temple University and Lincoln University.
State-System of Higher Education Average Tuition Level
For the 529 GSP, the Tuition Level for which the GSP Credit Rate is based on is the average tuition at the 14 universities that comprise Pennsylvania's State-System of Higher Education: Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock and West Chester.
Tuition Inflation The rate at which college tuition costs increase over time.
Tuition Inflation Value (Value of Credits) An Account's "Tuition Inflation Value" (Value of Credits) is based on tuition increases at the colleges or universities comprising the Tuition Level selected by the Account Owner. It is calculated by multiplying the number of mature GSP Credits by the actual per-credit tuition or average actual per-credit tuition in effect for the academic year for which the valuation is being made. The Tuition Inflation Value increases only when tuition increases occur at the school or schools comprising the selected Tuition Level. Generally, this occurs only once a year (effective September 1 or for payments made from an Account for the Fall Semester) and there is no incremental growth in the Tuition Inflation Value during the period between tuition increases. Please refer to Disclosure Statement for the methodology used to determine Credit Rates, and the 2008-2009 Guaranteed Savings Plan Credit Rate Schedule.
Tuition Level
 When you open a GSP 529 Account, you will be asked to designate a Tuition Level on the enrollment form. When you designate a Tuition Level, you are choosing the type of school for which you are saving. However, you may change your choice at any time and the change is made retroactively. Your choice determines the growth on your GSP Account when used for qualified higher education expenses. It determines the Tuition Inflation Rate of growth and the Tuition Inflation Value of the Account.
Withdrawal Money that you take out of your 529 account. Withdrawals are either qualified or non-qualified. Qualified withdrawals are those used for qualified higher-education expenses at eligible educational institutions. All other withdrawals are non-qualified.