|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:
- 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.