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Financial Planning / Paying For College
|Subject: Re: Paying for College and Aid||Date: 2/25/2013 11:17 AM|
|Author: spinning||Number: 8025 of 8098|
As far as parking it in a 529 to lock in current tuition, I think you are confused unless you have a very different type of 529.
Many states have 529 prepaid tuition plans. The various state plans have lots of different details about what schools they cover and what they give you if you go to a school not covered by the plan.
I don't know how prepaid tuition plans are treated by FAFSA.
"Prepaid tuition plans are college savings plans that are guaranteed to increase in value at the same rate as college tuition.
The main benefit of these plans is that they allow a student's parents to lock in tuition at current rates, offering peace of mind. The plans' simplicity is also attractive and most offer a better rate of return on an investment than bank savings accounts and certificates of deposit. The plans also involve no risk to principal, and often are guaranteed by the full faith and credit of the state."
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