 Prepaid Tuition Plans
• Check how much it might cost to send your child to a particular college.
• Consider where your child is likely to go to.
• Think about whether you'd rather prepay tuition at today's rates
• Make sure how much you can start contributing on a regular basis.
By planning college education, there are several investment options to consider:
• state-sponsored prepaid tuition plans available in several states. Owing to these plans parents to pay today's tuition rates with the assurance that the child will have the money to go to college when the time comes. These plans sound very attractive because of their guarantee as well as relative simplicity. Prepaid tuition plans differ from college savings plans that seek higher returns not tied to the increase in tuition. Essentially these plans allow parents (and relatives) to "buy" tuition for the child at a fixed price. Prepaid tuition plans allow parents to lock in a tuition rate and begin paying the cost of college today
• Many plans do not allow for account transfers or payments to out-of-state colleges.
• Assets are attributed to the account owner.
Things to remember:
• Read the prepaid tuition plan you size up.
• Make sure you everything is clear
• consider signing up for a plan that would let you transfer one child's unused money to a sibling.
• let your child to take part in earnings from part-time work.
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