Which is better, a prepaid tuition plan or a college savings plan?
A prepaid tuition plan offers a conservative approach to investing for college, and can be the right program for students planning to attend a state college. And, if tuition costs increase, you win-the number of credit hours you purchased remains the same, regardless of any changes in college costs. The NextStudent Scholar’sEdge™ savings plan is more flexible, allowing you to save for any attendance at any college. The amount you invest, plus the accumulated return on your investment, may well exceed college costs so you’ll come out ahead. Both plans are tax-deferred, and allow tax-free withdrawals for education-related expenses.
A prepaid tuition plan offers a conservative approach to investing for college, and can be right program for students planning to attend a state college. And, if tuition costs increase, you win-the number of credit hours you purchased remains the same, regardless of any changes in college costs. The NextStudent Scholar’sEdge™ savings plan is more flexible, allowing you to save for any attendance at any college. The amount you invest, plus the accumulated return on your investment, may well exceed college costs-so you’ll come out ahead. Both plans are tax-deferred, and allow tax-free withdrawals for education-related expenses.
