A Private College 529 Plan allows you to prepay for tuition today and use it later at one of more than 270 private colleges across the country, including Princeton, MIT, Duke, Stanford, and Notre Dame.
How a 529 Works
Parents make contributions throughout the school year, and at the end of June, receive a “tuition certificate” for their total contributions made in the preceding 12-month period.
Purchasing a full year’s tuition in 2005-2006 at Princeton University for an eight year old child cost $27,230. This certificate could be redeemed for tuition when the child turns eighteen for the 2015-2016 school year at $40,170. The value increased by nearly 50 percent or about $13,000.
Benefits of a Private 529 Prepaid Plan
- Families can lock in current tuition rates
- Avoid high tuition inflation and market volatility
- Growth in account’s value and use of tuition credits are both tax-free
- Tuition certificates may be usable at a private college or out of state school
- Contributions may be deductive on your state income tax
Learn more at Private College 529 Plan