Spring time means graduation. Graduation may mean college. What's the plan?
USA Today published an article a while back that's worth repeating in case you missed it. Titled "Prepaid college tuition plans: Know this before you invest," the article explains how prepaid college tuition plans can enable you "pay now" and minimize the rising cost of tuition.
A prepaid tuition plan allows families to buy future tuition credits at current prices; if you buy shares worth one semester's tuition when your child is young, those shares should always be worth one semester's tuition regardless of how much rates rise.
Unfortunately, many states have ended their plans or changed them as their budget deficits grew. Facing shortfalls, some states bumped up prices by charging larger premiums above the cost of current tuition, while some available plans don't offer guarantees.
College financing experts quoted in the article tell parents and students to review the specifics of their state's plan carefully. Advocates of the tuition plans call them "peace of mind programs" and say they still deliver on their promise.
Speak with your trusted advisors to see what college funding strategy would work best for your specific circumstances.
Reference: USA Today (June 8, 2012) "Prepaid college tuition plans: Know this before you invest"