(Part 2 in a blog series focusing on prepaid tuition plans)
By Betty Lochner
Director, Guaranteed Education Tuition (GET)
October 15, 2012

Last week, we introduced you to Prepaid Tuition Plans and gave you some Fun Prepaid Facts. For the next two weeks, we’ll take a closer look at some unique feature of prepaid plans. If your state offers a prepaid tuition plan*, make sure you check out the special features that are offered. If you consider an analogy to retirement plans, Prepaid plans are designed to be a “defined benefit”, as opposed to 529 savings or investment plans which are more like “defined contribution” plans. The defined benefit of a Prepaid plan (which varies by state) may prove to be better or worse than a similar investment in a 529 savings plan, depending upon investment performance and tuition increases during that time.