How The Plans Work
PLAN and DESCRIPTION
PREPAID TUITION: Parents prepay tuition in installments or lump sum, locking in future college costs at today's prices. The increase in the value of the tuition credits is exempt from state taxes, deferred on the federal level until disbursement.
SAVINGS BONDS: Federal and state savings bonds are sold at deep discounts to maturity value and grow tax-free when earmarked for college.
SAVINGS TRUST: States offer savings accounts for college tuition with various tax advantages and interest rate guarantees.
DATA: COLLEGE SAVINGS PLANS NETWORK, BUSINESS WEEK
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.