ERIC Number: ED357718
Record Type: Non-Journal
Publication Date: 1992-Mar
Reference Count: N/A
The Risks and Rewards of College/University Prepayment and Savings Plans. Policy Bulletin.
This bulletin describes types of prepayment and savings plans for financing college education, outlines advantages and disadvantages of these programs, and highlights issues that state and institutional planners and policymakers should consider. A description of existing tuition prepayment plans looks at state plans that typically permit investors to pre-purchase tuition for their beneficiaries at any public institution tax-free, at a cost equal to or less than the current cost of tuition. Drawbacks to these plans include restricting students to institutions in their own state, and problems with tuition caps and increases, equity, and accessibility of such plans to low- and middle-income groups. A further section discusses college savings plans which utilize state and city college savings bonds and federal EE Series savings bonds. Half of the states currently issue college savings bonds; Chicago (Illinois) and Pittsburgh (Pennsylvania) are two cities offering college savings bonds. A review of combination guarantee and savings plans describes the Massachusetts College Opportunity Funds and the College Sure Certificate of Deposit. The report concludes that these plans can increase a family's resources in financing postsecondary education. No single plan is without drawbacks, however, and most provide little benefit to the financially disadvantaged. Includes two comparison tables and 12 references. (JB)
Descriptors: Economically Disadvantaged, Educational Finance, Family Financial Resources, Higher Education, Paying for College, Policy Formation, State Programs, Tuition
Indiana Education Policy Center, Smith Center for Research in Education, Suite 170, Indiana University, Bloomington, IN 47405 ($2).
Publication Type: Reports - Evaluative; Collected Works - Serials
Education Level: N/A
Sponsor: Lilly Endowment, Inc., Indianapolis, IN.
Authoring Institution: Indiana Univ., Bloomington. Education Policy Center.
Identifiers - Location: Massachusetts; Michigan