What is a 529 Prepaid Tuition Plan? Prepaid tuition plans are offered by 10 states, and they give participants the option to pay for future tuition at today’s prices. In a prepaid tuition plan, tuition can be bought in percentages of a year’s tuition, or as a contract commitment for a specific number of academic credits. How is a Prepaid Tuition Plan Different from a 529 College Savings Plan? Of those, six are contract plans, meaning they’ll allow you to pay now for semesters of tuition in the future:Florida Prepaid College PlanMaryland Prepaid College TrustMichigan Education TrustNevada Prepaid Tuition ProgramMississippi Prepaid Affordable College Tuition Program (MPACT)Massachusetts U.Plan Prepaid Tuition ProgramThe other four plans are:Pennsylvania Guaranteed Savings PlanWashington Guaranteed Education Tuition (GET)Texas Tuition Promise FundPrivate College 529 PlanUsing a 529 Prepaid Tuition PlanThe main reason to open a prepaid tuition plan is to guarantee that you have saved enough to pay for a certain type of college for your child.

Source: Forbes May 27, 2021 14:03 UTC