By Sheila Salehian
Senior Deputy Treasurer, Office of
Nevada State Treasurer
Kate Marshall
March 3, 2014

Contributing to a prepaid tuition plan and a traditional 529 college savings plan simultaneously….really?

If you’re like most parents, the thought of paying for your children’s college education sends you to the mall shopping for gourmet chocolates or other ‘comfort food’.  You’re not alone. According to a recent survey, only 50% of families with children under the age of 18 have actually started to save for their children’s higher education needs.*   However, these families have realized that even if they cannot save for the entirety of their child’s college education cost, they are still better off borrowing less… essentially ‘paying themselves’ with tax free interest earnings when paying for qualified higher education expenses. Paying significantly more in the future for what you can’t afford to pay for today is a scary feeling.