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The prepaid college trust allows you to lock in today's rates on tuition and "purchase" semesters or years of school, while the college investment plan is a target mutual fund through T. Rowe.
If your child doesn't go to a state school, and you purchased years, you can take the amount and use it toward any other school.
i.e.: Say you buy a years tuition today at 9k (weighted average of state school)a year and and when the child needs it, tuition is 20k. If the child goes to a state school, the total year is paid for. If they go to a private or out of state school, they get 20k towards tuition.
If you could afford to buy a years worth, which is the better plan? Buying a year or putting the money in T. Rowe's target fund?
If your child doesn't go to a state school, and you purchased years, you can take the amount and use it toward any other school.
i.e.: Say you buy a years tuition today at 9k (weighted average of state school)a year and and when the child needs it, tuition is 20k. If the child goes to a state school, the total year is paid for. If they go to a private or out of state school, they get 20k towards tuition.
If you could afford to buy a years worth, which is the better plan? Buying a year or putting the money in T. Rowe's target fund?
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