| Buying College Credits for a Child? |
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BBKT
Member
Cash: $ 4.30
Posts: 17
Joined: 02 Mar 2009
Location: WA
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| Buying College Credits for a Child? |
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My sister's twins are turning five and I know that my sister and her hubby will have trouble affording both girls' college tuitions someday. I've heard that you can buy college credits for today's prices and those credits can be used for a child's future education. How does this work? Can you buy credits that can be used at any college, or just a specific college? With the increase in college costs, is it worth it to do this, or are the prices expected to drop someday? Or am I completely off base and is this just a scam? Any info would be greatly appreciated! Thanks! 
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Mon Mar 08, 2010 6:21 am |
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Creditnet_com
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Cash: $ 10.65
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Joined: 22 Feb 2010
Location: Seattle, Washington
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It's not a scam, many states offer prepaid college tuition programs. However, you'll need to be very, very careful when deciding whether or not the plan will be worth your investment today. Although these plans are advertised as "paying for future tuition at today's prices", when you take into account fees and interest, you're likely paying more than today's tuition costs. Since your sister's twins are only 5, the cost of the program is going to be substantially higher than if they were 12 or 13. My advice is to avoid these programs, especially since college is a good 13 years away. A lot can happen in 13 years. Your sister could strike it rich; the twins may want to go to school out of state, etc. I'd suggest to your sister to start putting money away each month for the twins in an investment account that will be more flexible when the time comes the twins want to go to college.
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Thu Mar 11, 2010 1:12 am |
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