Tuesday, April 21, 2009

Pre-paid tuition

Voltron says: I'm a big fan of pre-paid college tuition plans. They are offered in 19 states and allow you to lock in the current tuition rate and pay with a lump sum or payment plan. This differs from a "529" college savings plan where your returns are dependent on the investments in the plan. The "529" plans have been decimated by the market downturn, but pre-paid tuition plans are guaranteed by the state.


1 comment:

Anonymous said...

You don't think that college tuiton was also a bubble - that will come down as deflation takes place? I know many people who paid for their kid's tuition with home equity - now that it is gone - colleges may have to charge more reasonable rates?
why lock in today's high rates?