Bradley University

A 529 tuition prepay plan tailored for private colleges

Longtime readers of this column know that I strongly encourage contributing to a 529 college savings plan that offers investment options as the most efficient, tax-free way to save for your child's future college expenses.

I have long advised against signing up for the prepaid tuition version of the 529 plan because what you are really purchasing is a promise from a state that it will fund tomorrow's tuition at today's rates. That promise could be iffy. Consider the case of Illinois, which has a "junk" credit rating and hasn't had a budget in two years. Colleges in Illinois are no longer as attractive as they once were, as they cut faculty and costs in the wake of state...