The Kentucky Education Savings Plan Trust (KESPT), Kentucky's Section 529 college savings plan, announced today the launch of the KESPT Futuretrust(R) cash rebate program. Under an agreement with Mothers Work Inc., which operates the Futuretrust program, KESPT account owners may 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*.

Account owners may also apply for a KESPT/Futuretrust MasterCard(R), which may be used at millions of retail outlets to receive a minimum 1 percent cash rebate on all card purchases.

To enroll in the rebate program, account owners may log on to the KESPT Web site -- http://www.kysaves.com -- to link their KESPT account to Futuretrust. When rebates total $25, the money is automatically swept into an investment in the KESPT account.

KESPT is a state-sponsored, tax-advantaged 529 college savings plan administered by the Kentucky Higher Education Assistance Authority (KHEAA). A KESPT account may be used toward qualified higher education expenses, including tuition, eligible room and board, books and fees at colleges in Kentucky and nationwide.

"The KESPT Futuretrust Program offers account owners the opportunity to benefit from their normal spending habits," said David Lawhorn, KESPT program administrator. "The rebate program is another way to help families save more for rising college costs."

Popular KESPT features include:

- Tax Deferred Earnings and Withdrawals - Contributions to KESPT accounts

have the opportunity to grow free from federal and state income tax.

Withdrawals used for qualified education expenses are free of both

federal and Kentucky income tax. Federal tax-free qualified withdrawals

are provided by law through Dec. 31, 2010. Congress may or may not

extend the law beyond this date.

- Flexibility - KESPT funds may be used at Kentucky higher education

institutions and at colleges throughout the United States.

- Low Expenses - An annual asset-based management fee of 0.80 percent

covers investment management and administrative services.

- Investment Options - Choices are an age-based Managed Allocation Option,

100 percent Equity Option and Guaranteed Option.

- No income or residency restrictions apply when opening an account.

KESPT is managed by TIAA-CREF Tuition Financing Inc., a national leader in managing college savings plans. KESPT has nearly $80 million in assets and over 9,000 account owners. For more information, call 1-877-KY TRUST or visit http://www.kysaves.com .

To learn how to plan and prepare for higher education, visit http://www.GoHigherKY.org . For more information about Kentucky scholarships and grants, visit http://www.kheaa.com ; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; or call (800) 928-8926, extension 7381. For more information about low-cost student loans, visit http://www.studentloanpeople.com ; write The Student Loan People, P.O. Box 24328, Louisville, KY 40224-0328; or call (888) 678-4625.

* Kentucky Education Savings Plan Trust (KESPT), 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 Web site.

Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor.

Consider the investment objectives, risks, charges and expenses before investing in the Kentucky Education Savings Plan Trust. For details, visit http://www.kysaves.com for a disclosure booklet containing this information. Read it carefully.

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.

TIAA-CREF Individual & Institutional Services, LLC, member NASD, SIPC, distributes securities products.

The Commonwealth of Kentucky, 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 Kentucky Education Savings Plan under the funding agreement for the guaranteed option. Account value will fluctuate based upon a number of factors, including general market conditions.

Contact: Kristen Goodman

RF Binder Partners

212-994-7561 (office)

646-326-6083 (mobile)

Source: prnewswire