529 Prepaid Tuition Plans

Prepaid tuition plans are one of the two kinds of 529 plans. These plans allow you to pay for future college tuition credits at today’s prices.

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The value of the credits is guaranteed by the state to keep pace with the annual increase of tuition at public colleges, currently between 5 and 8 percent. However, the cost of these credits increases each year to keep pace with tuition.

Purchasing credits while the child has several years before college can represent a significant savings.

Advantages of Prepaid Tuition Plans:

Disadvantages of Prepaid Tuition Plans: