What if you could lock in your child’s college tuition at today’s prices? Prepaid college tuition plans are now offered in ten states and for those who are worried about the rising price of a college education along with the uncertainty of investment markets, buying tomorrow’s education at today’s prices seems like an easy decision.
But financial planners are largely unconvinced. Although this chart shows that the college tuition inflation rate has long been much higher than the general inflation rate, the decision, according to the 89% of financial planners who don’t use these prepaid plans, isn’t as easy as the numbers may indicate.
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