PROS                                    CONS

Investment allocation                   Returns are not
gets more conservative                  guaranteed
as a child gets older

Allows saving for                       Financial-aid treatment
room and board                          is unclear, so savings may
                                        compromise eligibility

Can be used at private                  States levy penalties on investment
and out-of-state                        gains if money is not
schools and transferred                 used for education
to other family members