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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Texas Tomorrow Fund — The Texas Tomorrow Fund is a prepaid college investment plan operating in Texas.There are two plans, The Texas Guaranteed Tuition Plan , and Tomorrow’s College Investment Plan . The former is a constitutionally guaranteed trust fund backed by the …   Wikipedia

  • 529 plan — A 529 plan is a tax advantaged investment vehicle in the United States designed to encourage saving for the future higher education expenses of a designated beneficiary. Overview 529 plans are named after section 529 of the Internal Revenue Code …   Wikipedia

  • Kay Ivey — Infobox Politician name = Kay Ivey caption = (Photo courtesy Office of the State Treasurer) birth date = birth date and age | 1944|10|15 birth place = flagicon|Alabama Camden, Alabama, U.S. residence = Montgomery, Alabama death date = death place …   Wikipedia

  • List of Oregon ballot measures — Elections in Oregon Federal offices Presidential elections 2000 · 2004 · 2008 Presidential primaries …   Wikipedia

  • Mark Shriver — Mark Kennedy Shriver Member of the Maryland House of Delegates from the 15th district In office 1995–2003 Personal details Born Mark Kennedy Shriver February 17, 1964 (1964 02 17) …   Wikipedia

  • Rich Crotty — Richard T. Crotty (born August 30, 1948 in Dobbs Ferry, New York) is the current mayor of Orange County, Florida, and as such, is the Chief Executive Officer and Chairman of the Orange County Board of County Commissioners. Biography Crotty grew… …   Wikipedia

  • Lucy Baxley — Infobox Politician name = Lucy Baxley caption = (Photo courtesy Office of the Lieutenant Governor) birth date = birth date and age | 1937|12|21 birth place = flagicon|Alabama Houston County, Alabama, U.S. residence = Vestavia Hills, Alabama death …   Wikipedia

  • Credit card — Personal finance Credit and debt Pawnbroker Student loan Employment contract Salary Wage Empl …   Wikipedia

  • Advance-fee fraud — African sting An advance fee fraud is a confidence trick in which the target is persuaded to advance sums of money in the hope of realizing a significantly larger gain.[1] Among the variations on this type of scam are the Nigerian Letter (also… …   Wikipedia

  • India — /in dee euh/, n. 1. Hindi, Bharat. a republic in S Asia: a union comprising 25 states and 7 union territories; formerly a British colony; gained independence Aug. 15, 1947; became a republic within the Commonwealth of Nations Jan. 26, 1950.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.