The program pools the money and makes long-range investments so that the earnings meet or exceed college tuition increases in that state. Savings plans allow participants to save money in a special college savings account on behalf of a designated beneficiary's qualified higher education expenses.
Contributions can vary, depending on the individual savings goals.
The plans offer a variable rate of return although some programs guarantee a minimum rate of return. It depends upon the investment needs and goals of the family . Each state has created innovative college savings programs individually designed to reflect the unique needs of its citizens. The plans represent affordable, flexible, and tax-advantaged options that can ensure the education of our most precious resources the children of America. Some states are starting to offer their citizens both types of programs, giving families the option to choose the college savings vehicle that is right for them.