Series 51: Prepaid Tuition Plans

Prepaid Tuition Plans

The other type of 529 plan is the prepaid tuition plan. Prepaid tuition plans allow college savers to purchase credits at participating colleges and universities for future tuition and sometimes room and board. Tuition costs are purchased at today’s prices for use in any future year, when tuition costs will most likely have increased. Prepaid tuition plans may be bought in one lump sum or in annual installments. Most are sponsored by state governments and have state residency requirements,