Prepaid Tuition Program

Filed Under » ,
Dictionary Says

Definition of 'Prepaid Tuition Program'

One of the two major types of 529 plans. Prepaid tuition plans allow donors to provide all or part of the amount of tuition for college education. The amount paid is guaranteed to grow at the same rate as college tuition, regardless of its rate of growth over time. If the cost of tuition at a specific college doubles within three years, then the amount of prepaid tuition will pay a proportionate amount of tuition at the time of payment.
Investopedia Says

Investopedia explains 'Prepaid Tuition Program'

Prepaid tuition plans allow donors to lock in the future cost of tuition in today's dollars. Because the cost of tuition is increasing faster than the rate of inflation, the rate of return on these plans is generally greater than that of guaranteed instruments such as bonds or CDs. But these plans are also guaranteed by the financial backing power of each state.
Search results for

'Prepaid Tuition Program'

  • The Last States With Prepaid Tuition Plans - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0311/The-Last-States-With-Prepaid-Tuition-Plans.aspx
    ... The prepaid tuition program itself pays future college tuition at any of the state's
    eligible colleges or universities - or it offers cost-weighted payment to ...

  • Choosing The Right 529 Education Savings Plan

    http://www.investopedia.com/articles/retirement/04/072104.asp
    ... Education.) Two Types of 529 Plans Before choosing a 529 plan, be aware of the two
    major types: the college savings plan and the prepaid tuition program. ...

  • Spoil Your Grandkids, Cut Your Tax Bill

    http://www.investopedia.com/articles/tax/09/cutting-taxes-with-college-costs.asp
    ... Furthermore, prepaid tuition plans are generally only available for in-state ... Qualified
    tuition program rules stipulate that contributors can stack up as many ...

  • 529 Plans: Types Of Plans | Investopedia

    http://www.investopedia.com/university/retirementplans/529plan/529plan1.asp
    ... Prepaid tuition programs allow for the advance purchase of credits for the designated
    beneficiary ... in a 529 plan as part of a scholarship program, the designated ...

  • A 529 Plan Fit For An Ivy League Education

    http://www.investopedia.com/articles/pf/09/independent-529-college-savings-plan.asp
    ... Tuition Inflation – Locking in current prices and avoiding tuition inflation is
    always going to be the primary benefit of a prepaid tuition program. ...

  • Stop Procrastinating! Enroll In A College Savings Plan

    http://www.investopedia.com/articles/pf/10/enroll-in-college-savings-plan.asp
    ... 529 Prepaid Tuition Plans Prepaid tuition plans, also called ... tuition locked in to
    today's tuition rate. The program then pays future college tuition and ...

  • College Savings Accounts: US Vs. Canada

    http://www.investopedia.com/articles/younginvestors/09/college-savings-us-canada.asp
    ... matching programs. There are two types of 529 plans available: college
    savings and the prepaid tuition program. Prepaid tuition ...

  • Pay For College Without Selling A Kidney

    http://www.investopedia.com/articles/younginvestors/08/save-money-college-tuition.asp
    ... alternative to state-sponsored, prepaid tuition plans, consider ... Get College Credit
    Without the Tuition Bill No ... and College Level Examination Program (CLEP) tests ...

  • Find Security In Covered Bonds

    http://www.investopedia.com/articles/bonds/09/covered-bonds.asp
    ... on the obligation of replacing troubled or prepaid loans with ... New estimates show
    that the TARP program may show a ... Prestigious Colleges With The Lowest Tuition. ...

  • The Truth About Naked Short Selling

    http://www.investopedia.com/articles/optioninvestor/09/naked-short-selling.asp
    ... Prepaid forwards and swaps are sometimes used to carry out ... New estimates show that
    the TARP program may show a ... Prestigious Colleges With The Lowest Tuition. ...

Related Articles

Partner Links