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I believe that they cap the return to being between a 2% loss and a 2% gain per year, if you do not attend a member college. Given the recent losses in the stock market, a 2% loss sounds pretty good right now.
I've got two kids and split the college money into an I529Plan and a regular 529, one per kid. They are transferable within a family, and I figured my odds were good that one of the two kids would end up at a member college. The regular 529 is down a huge amount, so the I529 plan is doing great in comparison.
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