Prepaid tuition plans flawed but still popular

A prepaid tuition plan allows families to buy future tuition units or credits at current prices.

Prepaid college tuition plans are no longer the surefire solution to runaway tuition costs they once seemed.

The mostly state-sponsored plans were designed as a way to save for college by locking in at least a portion of future tuition at today’s prices.

The premise remains sound: Pay now to minimize the shock of rising costs. After all, tuition has increased an average 7 percent annually since 1990 and shows no sign of slowing down.…Read More