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What is a 529 plan?

A 529 plan is a tax-advantaged savings account designed to be used for the beneficiary's education expenses. Use the money in your 529 for a wide range of college expenses at accredited schools nationwide in addition to tuition expenses for K-12, certain apprenticeship costs, and student loan repayments. 1

Do 529 plans pay for college?

Review and compare state 529 savings plans below. In 2023, only 30% of families used savings funds, such as 529 plans, to pay for school, according to a report from Sallie Mae. If you’re interested in saving up to offset future college costs, below are tips for comparing plans:

What is a private college 529 plan?

The Private College 529 Plan is a separate prepaid plan for private colleges sponsored by more than 250 private colleges. Educational institutions can offer a prepaid tuition plan but not a college savings plan. The first education savings plan was a prepaid tuition plan: the Michigan Education Trust (MET) was created in 1986.

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