prepaid tuition plan

Popular Terms
A college savings plan that is guaranteed to increase in value at the same rate as college tuition. For example, if parents invest enough in a plan to cover one year's tuition at the current rate, the plan will pay for one year's tuition when their child is ready for college, no matter how much tuition has increased. These plans, which are run by state governments, apply to tuition rates at public colleges. If a student decides to go to a private college, he or she will receive an amount that corresponds to public college tuition rates. Some private colleges also offer prepaid tuition plans.

Email Print Embed