Susie's friend with the earrings. Susie's friend's parents with the nose rings. But it's the thought of paying for college that jolts parents upright in bed, drenched with sweat. That hasn't gone unnoticed by the financial services industry. So it's no surprise that saving for college has become a big business.
Billions are already in custodial trust accounts.
Fund companies are bidding fiercely to capture the few remaining states that don't have plans. And with good reason. The money gets socked into professionally managed accounts with a mix of stocks, bonds and other investments geared toward a child's age or a family's investment preferences. And unlike the old prepaid tuition plans, the proceeds can be used at any college in the country. One company, UPromise, is even planning a frequent-flier type rewards program around the plans.