Financial Dangers for Prepaid Tuition Plans

October 5, 2009

Last year's collapse on Wall Street has left many state prepaid tuition plans in unhealthy shape, The New York Times reported. Some states are imposing new fees on families, while others are developing scenarios for what to do if they close, and still others are receiving bailouts from their states. The plans, designed to assure families of the cost of tuition at public colleges and universities, were promoted as a completely secure way for families to save money and for states to promote higher education.

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