guaranteed admission to the college of your choice. locking in current tuition rates for future college education.

Prepaid tuition plans cover tuition costs and mandatory fees only. They do not cover room, board, or book expenses.

A prepaid tuition program is a type of 529 college savings plan that allows donors to provide all or part of a student’s tuition for college or university. The amount paid is guaranteed to grow at the same rate as college tuition, regardless of its rate of growth over time.

529 college savings plans can be withdrawn tax-free to pay for qualified higher education expenses, which include tuition, fees, supplies and equipment, computers, internet access and even some room and board. Prepaid plans, on the other hand, usually only cover the costs of tuition and fees.

If you prefer to cover your costs for in-state tuition and feel uncomfortable taking market risks with this bucket of funds, then the Florida Prepaid College Plan fits your profile. If you value flexibility and prefer diversified market risk over tuition inflation, then the Florida 529 Savings Plan is a better choice.

Prepaid tuition plans let you purchase college credits or units at today’s prices to be used in the future. College savings plans let you invest contributions that can be withdrawn later to help pay for qualified tuition expenses.

Prepaid tuition programs can be a great way to save for college. However, they may not be as good a way as other options – like a normal 529 plan. If you think there is a high likelihood your child will go to an in-state public school, this can be a good way to save on college costs.

Prepaid tuition plans are 529 plans that allow you to lock in future college tuition costs at today’s rates. There is also a national option, called the Private 529 Plan. Individuals may also choose a college savings plan for students who won’t attend an in-state school.

6%

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

529: The Basics. 529 Plan: A 529 is a state-sponsored plan that offers tax-advantaged investments to cover the cost of higher education. ESA: Also called Coverdell education savings accounts, ESAs are a tax-advantaged investment used to fund education. …

Any UTMA account assets are counted as the designated beneficiary’s, while the 529 plan assets are counted as the parent’s on the FAFSA form. It is harder for a child to qualify when the assets are theirs, so UTMA accounts are less advantageous than 529 plans when it comes to qualifying for financial aid .