With a prepaid college plan, you can prepay for your child’s college or university education at nearly any institution in the United States.
Nine States Offering Prepaid College Plans
| Florida | Florida Prepaid College plan |
| Illinois | College Illinois! 529 Prepaid Tuition Program |
| Maryland | Maryland Prepaid College Trust |
| Massachusetts | Massachusetts U.Plan |
| Michigan | Michigan Education Trust 529 Prepaid Tuition Plan |
| Mississippi | Mississippi Prepaid Affordable College Tuition (MPACT) Program |
| Nevada | Nevada Prepaid Tuition Program |
| Texas | Texas Tuition Promise Fund |
| Washington | Washington Guaranteed Education Tuition (GET) |
Florida Prepaid College Plan
The Florida Prepaid College Plan is the oldest prepaid tuition plan in the U.S. Everything you put in is guaranteed by the State of Florida, so you never lose the money you pay out. Funds used can be transferred to an in-state private institution or any out-of-state college or university.
Choose from five different plans:
- 2-Year Florida College Plan: Tuition and fees a two-year AA degree from a Florida College
- 4-Year Florida College Plan: Tuition and fees for your kid to earn a bachelor’s degree from a Florida College
- 2+2 Florida Plan: Tuition and fees for a bachelor’s degree with two years of courses at a Florida College and then two years at a Florida University
- 1-Year Florida University Plan: Tuition and fees for one year at a Florida University
- 4-Year Florida University Plan: Tuition and fees for a bachelor’s degree at a Florida University
For our more in-depth explanation of the Florida Prepaid College Plan, click here.
Illinois Prepaid College Plan
The College Illinois! 529 Prepaid Tuition Program lets you purchase semesters at any Illinois public university. To open a plan, the plan owner or the beneficiary must meet the one-year Illinois residency requirement. If desired, you can transfer the plan benefits to another United States higher learning institution or international post-secondary institution that’s recognized by the United States Department of Education.
Choose from five different plans:
- Community College: Up to four semesters of in-district tuition and mandatory fees at community colleges in Illinois
- University: Covers Up to nine semesters of tuition and mandatory fees at every in-state Illinois public university except the University of Illinois Urbana-Champaign
- University+: Up to nine semesters of tuition and mandatory fees at every Illinois public university
- 4 + 4 (University Combination Plan): Four Community College semesters and four University semesters at any Illinois public university except the University of Illinois Urbana-Champaign
- 4 + 4 Plus (University Plus Combination Plan): Four community college semesters and four University+ semesters
Maryland Prepaid College Plan
The Maryland Prepaid College Trust lets you prepay for your child’s education through a one-time lump sum payment, equal yearly payments, 60 equal monthly payments, extended monthly payments, or a down payment. Accounts must be opened at least three years before the benefits are being paid out. The plan owner or the beneficiary must be a Maryland or DC resident at the time the account is opened.
Funds are backed by the Maryland Legislative Guarantee, which means the Governor must add funds to the state budget to pay the full plan benefit. However, it is ultimately up to the Maryland General Assembly to approve this part of the budget.
Choose from three different plans:
- University Plan: One to sixteen semesters of tuition at a four-year college
- Community College Plan: One or two years at a community college
- Two Plus Two Plan: Two years at a community college and two years at a four-year college
Massachusetts Prepaid College Plan
The Massachusetts U.Plan lets you lock in the price of tuition and fees of each year you contribute. To enroll, you must be a United States citizen or permanent resident. Plans can only be taken out for children from newborn up through 10th grade.
It works like this:
Plan owners start contributing to a U.Plan account on August 1st. On the following July 15th, the plan pays for Tuition Certificates, which cover a fixed percentage of tuition and fees at participating Massachusetts colleges and universities. For example, you pay $1,500 during year one. This equates to 10% of current tuition rates at Massachusetts state institutions. Your tuition certificate from year one will fully cover 10% of tuition costs for one year at the time of your child’s enrollment—even if tuition costs raise drastically.
Michigan Prepaid College Plan
The Michigan Education Trust 529 Prepaid Tuition Plan lets you prepay for a child’s education at a Michigan public university or community college. The beneficiary must be a Michigan resident at the time of program enrollment. The beneficiary has 15 years from the time of high school graduation to use the funds. If desired, funds can be directed to any out-of-state college, university, or community college or transferred to another immediate family member.
Choose* from three different plans:
- Full Benefits: In-state tuition and mandatory fees at any Michigan public university or tuition and mandatory fees at any Michigan public community college
- Limited Benefits: In-state tuition and mandatory fees at any Michigan public university or tuition and mandatory fees at any Michigan public community college so long as the tuition cost does not exceed 105% of the weighted average tuition of all Michigan public four-year universities
- Community College: In-district tuition and mandatory fees at any Michigan public community college
*A single beneficiary can have multiple plans, but the combined plans cannot exceed 150 credit hours (five years) of benefits.
Mississippi Prepaid College Plan
The Mississippi Prepaid Affordable College Tuition (MPACT) Program prepays tuition and mandatory fees at Mississippi public universities and community colleges. Plan owners can choose from several flexible payment options: lump sum, annual payments, monthly payments, down-payment plus annual or monthly payments. Funds are guaranteed by the State of Mississippi, so you never lose what you put in.
Choose from six different plans:
- Four-Year University: In-state tuition and mandatory fees for four years (124 semester hours) at a Mississippi university
- Two-Year University: In-state tuition and mandatory fees for two years (62 semester hours) at a Mississippi university
- One-Year University: In-state tuition and mandatory fees for one year (31 semester hours) at a Mississippi university
- Two-Year Community College & Two Year University: In-state tuition and mandatory fees for two years (62 semester hours) at a Mississippi community college and two years (62 semester hours) at a Mississippi university
- Two-Year Community College: Tuition and mandatory fees for two years (62 semester hours) at a Mississippi community college
- One-Year Community College: Tuition and mandatory fees for one year (31 semester hours) at a Mississippi community college
Nevada Prepaid College Plan
The Nevada Prepaid Tuition Program lets you lock in tomorrow’s in-state Nevada tuition at today’s prices. If desired, a plan’s value can also be transferred to an out-of-state public, private, or vocational college or university that receives federal financial aid. To enroll, the purchaser or beneficiary must be a Nevada resident, or the purchaser must be a Nevada public college or university graduate. Beneficiaries must use the benefits within six years of graduting high school.
Choose from five different plans:
- 4 Year University Plan: Tuition and mandatory fees for 120 credit hours at a Nevada public university
- 2 Year University Plan: Tuition and mandatory fees for 60 credit hours at a Nevada public university
- 1 Year University Plan: Tuition and mandatory fees for 30 credit hours at a Nevada public university
- 2 Year Community College Plan: Tuition and mandatory fees for 60 credit hours at a Nevada community college
- 2 Year Community College + 2 Year University Plan: Tuition and mandatory fees for 60 credit hours at a Nevada community college and 60 credit hours at a Nevada public university
Texas Prepaid College Plan
The Texas Tuition Promise Fund lets you prepay tuition and school-wide required fees at most public colleges and universities in Texas. Plan owners purchase tuition units that can be redeemed for tuition and mandatory fees at different public institutions in Texas. The units’ values are determined by the type of unit and the cost of college at the time benefits are redeemed. If desired, a plan’s value can be transferred to another out-of-state public or any eligible private university. However, plan funds are only guaranteed by Texas’ public colleges.
Choose from three different types of tuition units:
- Type 1 (most expensive): 100 units is equivalent to 30 semester hours (one year) at the most expensive Texas public college or university
- Type 2: Redeemed to pay the weighted average cost of undergraduate tuition and mandatory fees for full-time, in-state students at all four-year Texas colleges and universities
- Type 3 (least expensive): Redeemed to pay the weighted average cost of in-district undergraduate tuition and mandatory fees at two-year Texas public colleges
Washington Prepaid College Plan
The Washington Guaranteed Education Tuition (GET) is a state-guaranteed IRS 529 Qualified Tuition Program. Either the student or plan owner must be a Washington resident at the time of enrollment. Plan owners purchase GET units, which have a fixed yearly price and can be redeemed to cover future college costs. One-hundred GET units always covers one-year of full-time, undergraduate tuition and mandatory fees at the priciest public university in Washington. Plan owners can purchase anywhere from 1 to 800 GET units per student to cover tuition, mandatory fees, and room and board costs.
Choose between three different plans:
- Lump Sum Plan (pay as you go): Contribute any amount of money you want when you want
- Custom Monthly Plan (fixed monthly payments): Lock in the current unit price and make equal monthly payments throughout your contract
- Combination of Custom Monthly and Lump Sum: The Custom Monthly Plan plus additional lump sum unit payments
Closed Prepaid College Savings Programs
Several other states used to offer Prepaid Tuition Plans, but these programs closed due the high costs. States with closed programs include Alabama, Colorado, New Mexico, Ohio, South Carolina, Tennessee, West Virginia, Wisconsin, and Wyoming. Kentucky’s plan closed in 2004, but the website states that the plan is reassessed on an annual basis.
Alternatives to Prepaid College Plans
If your state doesn’t offer a prepaid college plan, you can save for your child’s education with a 529 college savings plan. A 529 college savings plan operates as an investment account, but the earnings are tax-free if you use the funds for qualifying educational expenses like college tuition. A U.S. citizen can enroll in any of the state-sponsored 529 college savings plans regardless of their state of residency. Learn more about your 529 options here.
