Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.

Sign in to follow this  

529 vs prepaid Plan for education

Recommended Posts

I’ll be starting some sort of college fund for a child due soon,  and I’m wondering if anyone has any experience between choosing the different college savings plan,  such as a prepaid plan vs the non prepaid plan.


is there one that is more generally better than the other?  I like the prepaid as that you are essentially paying tuition at today’s price, but I wonder if a non prepaid plan is better since it grows.


anything to consider between choosing these two?

Share this post

Link to post
Share on other sites

Its great to see parents thinking ahead on even an unborn child's future.


Generally, a prepaid tuition plan is for one school, though some states have tuition certificates that would be good for any state supported (Don't laugh @hegemony) school in that state. If the child ends up not wanting to go to said school or for some reason isn't academically qualified for said institution then you would need to determine your options. Check the details on the ability to either sell your prepaid credits or get a refund in case of things such as you child decides to join the military instead of go to school. Some states do offer a tax credit for prepaid tuition certificates. Check with a tax professional etc etc etc


529 plans have the advantage of being tax free on both what you put into it as well as the capital gains when you receive distributions as long as it goes for a qualified educational expense - tuition, on-campus dorms, and books basically. It also offers the flexibility to go to any school - public or private - and if your child turns out to be a star athlete or academic prodigy and gets a full ride then the 529 can go towards things that a scholarship won't cover like books.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Member Statistics

    • Total Members
    • Most Online

    Newest Member

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
  • Create New...

Important Information