Contributions are tax deductible at the state level and the earnings are exempt from state taxes altogether. At the federal level, earnings are deferred until the student goes to college and then, under current federal law, are taxed at the student's rate. These amounts will be adjusted annually for inflation. There are no enrollment or application fees. Parents can save for children.
Grandparents can save for grandchildren.
Aunts and uncles can save for nieces and nephews. Stepparents can save for stepchildren. There is no relationship requirement. If you qualify, you'll owe less in taxes, and you may get cash back. Even if you don't owe income tax you can get the credit.