Parents Lock In Tuition Rates With Pre-paid Tuition
AIR DATE: January 21, 2013
Saving for college is something a lot of parents don't think about as their kids grow up. With college costs on the rise though, saving early might be a good idea. The Nevada Treasurer's Office offers a program where parents can prepay college tuition and lock in rates in case the cost goes up. The program is currently enrolling participants. We'll talk to Nevada State Treasurer Kate Marshall, who administers the program, about college costs and saving for college.
This is just another unnecessary, intrusive nanny state spending program, designed to take our money and put it in the government's pocket. What's wrong with saving and investing for college oneself?? Privately done, it would be the same money invested, a better rate of return (probably), but without scores of $100,000 per year state bureaucrats sucking up their cut for "managing" your investment. Almost certainly this is a scheme to get your money into the state coffers now, while intending to scam you out of it in the future.Tom Hurst –Jan 16, 2013 11:25:44 AM
Our financial advisor enrolled us in a different state's tuition program because she felt the other state had fewer penalties if our children chose to attend an out of state university. Is there information for the 'lay man' to see the pros and cons of different programs so I don't have to rely only on others' advice?Anna –Jan 16, 2013 10:22:49 AM
Hi Anna - We found the following link comparing savings plans state-by-state. Hope it's helpful -thanks for listening.
http://www.collegesavings.org/planComparisonState.aspxMarie –Jan 17, 2013 12:22:30 PM
My understanding is that future payment of then-current costs per credit hour are NOT guaranteed.
If the program's underlying assumptions turn out to be too optimistic and funds are not adequate, pre-payers will only get what the program says it can afford.
Further, while there are a couple of options for transferring benefits with a family if the designated child does not attend college, if no child in the family can use the benefit only the initial contribution is refunded, and ALL gains are lost.
If this is not correct, please clarify.
Alanna Bowers –Jan 16, 2013 09:59:26 AM
Are there actually people who trust the Nevada State government after all the funds that it stole during the 2011 legislative session?ed uehling –Jan 16, 2013 09:01:46 AM
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