You get splendid tax breaks from 529s. But some parents and grandparents worry that using these plans will reduce their eligibility for student aid. It might-but then again, it might not. You don't know in advance what your particular situation will be. Here are some facts that can help you decide.
Prepaid tuition plans -the conservative choice.
These plans guarantee that the money you save today will match the growth in tuition inflation at state-run colleges. Bryant Quinn columns Jane Bryant Quinn welcomes letters on money issues and problems but cannot offer individual financial advice. Prepaid plans appeal especially to people with modest incomes who are aiming for a state college or university. You contribute to a pool of money that's managed by the state treasurer or an outside investment adviser. A typical savings plan leans toward stocks when the child is young, then moves toward bonds and cash as college draws near.