| Prepaid Tuition Plan |
College Savings Plan |
| Most plans allow you to prepay tuition at eligible public and private colleges and universities at today's price. |
No lock on college costs. |
| All plans cover tuition and mandatory fees. A few plans allow you to purchase a room and board option, use excess tuition credits for other qualified expenses or cover all qualified education expenses. |
Covers all "qualified higher education expenses," including:
- Tuition
- Room and board
- Mandatory fees
- Books, computers (if required)
|
| Most plans set lump sum and installment payments prior to purchase based on age of beneficiary and college tuition years purchased. |
Many plans have contribution limits in excess of $200,000. |
| Many state plans guaranteed or backed by state. |
No state guarantee. Most investment options are subject to market risk. Your investment may make no profit or even decline in value. |
| Some state plans have age/grade limits for beneficiaries. |
No age limit. Open to adults and children. |
| Most state plans require either plan owner or beneficiary to be a state resident at the enrollment time. |
Most plans do not have a residency requirement. However, nonresidents may only be able to purchase some plans through financial advisers or brokers. |
| Most plans have limited enrollment period. |
Enrollment open all year. |
