A Penny in the College Bank
During a family reunion, a guest mentioned that he was glad that he was starting the Florida college preplan. When I pointed out the possibility of one of his daughters wanting to go out of state, he scuffed at the idea. It made me wonder whether or not the idea of paying for college early by the use of state-program, perhaps to avoid rise in costs, was worth the potential yearning for that same child to follow their own path and choose a school which does not meet the plan’s criteria.
After reading an article by a contributor from USA Today, the pre-paid college mold is not one that fits all. It is beneficial in some circumstances. While the cost to attend may rise every year, the money put forth today can at least cover the price of future credits. Also, despite Florida’s preplan only covering public universities and community colleges, it can also be applied to cover the average in-state public tuition cost towards a private school or one that is located out of the state. No matter what, the money that you put in you will get back in full. Florida, Massachusetts, and Washington are among only a handful of states that guarantee a pay in difference incase the universities that the plan does cover raise their prices. For the people investing in these plans, it is a stress-free scenario. There is no worry based on the fluctuations of stock markets effecting the funds that are being saved.
For those doubters who, while they still like a sense of security, want more options, programs such as the 529 Plans, make the process more flexible on a 360 degree angle. For the most part, there are various payment plans and a more varied selection of top-ranking colleges. Rather than the student being forced to stay in-state, the 529 Plans works to include private colleges and universities across the nation. Among the most part, these colleges are diversified enough to include a range of schools from some of the Ivy Leagues to consortiums. Other than more options to choose from, there exists no age limit as to when a child must be signed up for the program. Also, if when college season comes around, the money is used towards all of the school’s expenses then there is a levy on taxes. Cons to this program exist in that the worth of the savings may fluctuate. As opposed to the Florida preplan or other state-exclusive programs, the 529 Plans is based on the current state of that market. The money is invested into stocks and bonds.
As Joe Hurley, the founder of SavingforCollege.com has said in the Seattle Times, it is impossible to buy future tuition at today’s prices through state-saving funds such as Florida preplan, instead it is purchasing the tuition at its premium. While the 529 Plans may not be a concrete path, it does allow room for more options and possibilities. However, just as it was insinuated that a child’s caretakers should know best for their children, it is important that every family makes a decision as to what is right for them.
Prompt: In a poem describe a child inserting their opinion in an adult’s conversation.