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College Savings: Information on State Tuition Prepayment Programs

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Report Type Reports and Testimonies
Report Date Aug. 3, 1995
Report No. HEHS-95-131
Subject
Summary:

A handful of states have adopted tuition prepayment programs, which allow parents to pay in advance for tuition at participating colleges on behalf of a designated child and guaranteeing to cover the child's future tuition bill at one of these colleges, no matter how much costs rise. By allowing purchasers to "lock in" today's prices, these programs are intended to ease families' concerns about whether they will have enough money in the future to pay for their childrens' college expenses. This report (1) describes how these program operate and the participation rates they have achieved, (2) assesses participants' income levels and options for increasing the participation of lower-income families, and (3) discusses the key issues surrounding these programs.

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