Why pre-pay for college?
When your child gets into a higher learning institution, the school will send you a bill breaking down that year’s upcoming tuition. But, that’s not necessarily what you’ll pay every year. Inflation occurs and tuitions rise. If you pre-pay for longer periods of your child’s education, in advance, using your 529 plan, you can “lock in” a tuition rate, protecting yourself against the future rising costs of tuition. Note, beneficiaries using it must attend either an in-state public college or university – but there are a select few private universities that accept the plan.