Has anyone thought about prepaying future tuition?

gusaspara
Mon, 29 Sep 2008 23:02:31 +0000

It makes sense to prepay only if you can lock in the freshman year tuition rate. Then you save the average 6% raise per year. Unless you’re sure that you can make more on your $ than the tuition increase will be it’s a good deal. You lose what you could have made on the money if your child decides to leave the school - you then get the $ back without interest. If you prepay and cannot lock in the rate you lose any earnings you can make on the money as well as having to pay the yearly increases. Be careful and check with the school’s policy - some will let you lock in the tuition rate, some won’t, but most will be willing to take your $!

I’ll be surprised if tuition rates stop increasing.