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The 529 college savings plans are distinctly different from 529 prepaid tuition plans. The 529 prepaid tuition plans allow for prepurchase of tuition based upon present day prices and then tuition is paid when the beneficiary is in college.
1.781,612 were for 529 prepaid tuition plans. Of the remaining 1;993.044 contracts.
While the state-sponsored 529 prepaid tuition plans are aimed at public universities, Independent 529 Plan (www.independent529plan.org), extends the benefits of prepaid tuition savings to over 260 private colleges and universities around the nation.
IRC section 529 prepaid tuition plans. Despite the apparent attractiveness of these state-sponsored plans to a low-income financial aid qualifier--the tax-free plan locks in today's tuition rate for future college education, eliminating the risk associated with other savings options--they are the least appealing Tier 3 asset, because distributions are counted as resources.
* Section 529 prepaid tuition plans will no longer be treated as a dollar-for-dollar offset to the cost of attendance or financial aid.
The current FAFSA does not instruct students to include a 529 prepaid tuition plan as part of their parent's net worth, so financial aid administrators will have to ensure that 529 prepaid tuition plans no longer directly reduce need-based aid.