1. 529 Savings Plans
There are two types of 529 plans: prepaid tuition plans and college savings plans. Prepaid tuition plans allow parents to prepay future tuition and fees at today's cost. ... All states offer either a college savings plan, a tuition prepayment plan, or both. ... Lower income families often do not have the disposable income to save, whether it is for their children's college education or their own retirement. ... Prepaid tuition plans allow donors to lock in current tuition rates by paying now for future education costs. ...
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