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Prepaid tuition plans allow families to prepay all or a portion of future college tuition at today’s prices. Prepaid tuition plans offer many of the same benefits as 529 college savings plans, such as tax savings and favorable financial aid treatment, but without the investment risk. Most prepaid tuition plans are state-sponsored, with the exception of Private College 529, which is run by nearly 300 participating private colleges and universities.
Prepaid tuition plans can be a central part of a healthy college savings strategy, but they are often misunderstood. This infographic busts the top six myths about prepaid tuition plans and provides tips to help you make well-informed choices when it comes to saving for college for your family.
