Investment for your kids under 529 prepaid tuition plan

529 Prepaid Tuition Plan

Tuition fees are increasing like anything. As a result students are suffering from huge debt burden. But a little investment today can save your dollars tomorrow. The Prepaid Tuition Plan under Section 529 is such a simple and attractive scheme that anyone would love it.

The name itself states a lot about the plan. This is an excellent scheme for parents to save for their kids. The best part of the idea is that the value of the investment never decreases, on the contrary, it increases with due course of time.

The scheme is something like that; you can buy some percentage of the tuition fees of a state college. The tuition fee may go on increasing, but your share will remain unchanged.

If you buy, say, 60% of the tuition fees of a state college today, this would be considered as 60% of the tuition fees 15 years later. Doesn't that sound good? No other investment can bring such a high profit for you.

This way parents can lock the tuition fees at lower rates and avoid paying more for their children's education in future.

The plan is most beneficial if grandparents invest for their grandchildren, because earlier you buy the shares, more can you save.