De-mystifying 529 Prepaid Programs
By Mary G. Morris,
CEO, Virginia529
May 5, 2014
After deciding on a 529 plan for their college savings, one of the first questions asked by many families is “savings plan or prepaid tuition plan?” (For a basic overview of the two, read “What is a 529 Plan?” on this website.) While savings programs are relatively straightforward, prepaid tuition programs suffer from many misconceptions, perpetuated by people who don’t fully understand their benefits.
The 13 prepaid tuition programs available in the U.S. offer customers a hedge against future tuition inflation that can’t be realized through savings programs.