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Reply to "What does: "he can always go to college after his career" really mean"

Points to the College Scholarship Plan (CSP) from an MLB publication detailing the program in 2016 that was given to us by MLB. (so, from the horses mouth).

  • Max number of semesters allowed is 8, max quarters/trimesters is 12
  • Covers accredited college/university or JC in pursuit if undergraduate degree
  • Does NOT cover trade, vocation or grad schools
  • Plan provides payments in two categories of expenses: Tuition Allowance & Living Allowance
  • Student can attend part time and still receive benefits
  • ALL CSP payments are taxable as "wages" for federal tax purposes.  This means that all payments are subject to income & employment tax withholding at the time of payment.  Player or school receives net amount after withholding
  • Participant must commence studies within two years after the date participant ceases to be reserved by a MLB club or MiLB club, voluntarily retires or is reserved on an inactive list, whichever comes first.

If a player chooses payments in the Incentive Bonus Plan, those payments are funded from the players CSP, so any payments are deducted from the CSP balance (and taxable at time of payment).  Basically, the incentive bonus plan is a way to make early withdrawals from CSP without attending school, so apply your TVM calculation and it makes sense to take the early draw and put in savings if you have the self discipline.

Everything you want to know and the most current info:  www.mlb.com/scholarship

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