What are the pros and cons of planning ahead and prepaying tuition for a designated college?
Many colleges offer so-called prepaid tuition plans. The typical plan requires that you pay a relatively small sum of money while your child is still young, possibly even before he or she is out of diapers. In exchange, the college guarantees that your youngster s tuition will be fully paid when it s time to trot off to school. Many financial experts urge parents to avoid such programs. What happens if your kid doesn t want to further his education, or simply decides on a different school? Some prepayment plans cover several colleges — which is a little better — but that still won t help if your son or daughter decides that a high school diploma is enough.
