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Sonja [21]
3 years ago
8

Which of the following is a difference between a prepaid tuition plan and a college savings plan

SAT
2 answers:
morpeh [17]3 years ago
7 0
A college savings plan means that you have the tuition plan money saved up for college and a prepaid plan means that you pay as you go on throughout the courses
OleMash [197]3 years ago
5 0
<span>With a prepaid tuition plan, you prepay all or part of a child's future tuition by investing in units or contracts (depending on how the particular plan is structured), and you're guaranteed a minimum rate of return. However, you aren't necessarily entitled to any extra money that the plan may earn.
</span><span> With a college savings plan, you contribute to an individual investment account to pay for a child's future education. Your money is invested in a particular investment portfolio at the time you join the plan, and you take your chances on what your rate of return will be--there are no guarantees. If your portfolio performs well, you reap the benefits. If it doesn't, you suffer the losses.
</span>
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