<p>In sort of the same vain, DePauw University (Greencastle, IN) will allow you to pay for four years of tuition in advance at the current rate, thereby locking in your cost. Obviously not an option unless you have a substantial pile of cash around, but its a risk free way to earn 6% per year. (Bonus: I believe that if you drop out, or don’t finish the four years, they return your “unused” money to you.)</p>
<p>Baylor does it for all 4 years. </p>
<p>Can you take my college finances survey? its for a academic paper.
[College</a> financial issues and financing Survey](<a href=“http://www.surveymonkey.com/s/QYNNS8F]College”>http://www.surveymonkey.com/s/QYNNS8F)</p>
<p>I spoke with my friend about St. John’s and he confirmed that it’s as neurofox said - you pay a set amount for each year. It’s a bit higher than the usual rate for the first year but by the second year, my friend was paying less than increased regular tuition…</p>
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<p>Not risk free–tuition may not be going up 6% a year. Anyone who is considering prepaying four years of college tuition (and yes, there may be people reading this thread who are) should be looking at their child’s school’s recent history of tuition increases.</p>
<p>“Not risk free–tuition may not be going up 6% a year. Anyone who is considering prepaying four years of college tuition (and yes, there may be people reading this thread who are) should be looking at their child’s school’s recent history of tuition increases.”</p>
<p>Interesting perspective–you are right of course, that the past is no indicator of the future. I would say that while it is not a risk free bet, it is a as risk free as putting your money into a short term federal securites money market fund—miniscule risk to principal, and in this case, a probable higher return than one could currently get in a a 4 year CD for example. I have read that some people think the tuition bubble is going to burst, but my own humble opinion is that will not be happening. (Of course now that I have said that, it most likely will!)</p>
<p>Agree with Stephandrew. The exact 6% may not hold, but something north of 3% is as good as a sure thing. And don’t forget, this is after-tax, so on a pre-tax basis it is even higher. Can’t think of any investment better than that on a risk-adjusted basis.</p>
<p>We know of at least one school where the tuition increase for the next year is going to be 1%. Now, there’s a trend I’d love to see spread far and wide. 
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<p>Surely someone has done research comparing tuition increases with different economic indicators? Could a teeny silver lining of the Great Recession be a damper on tuition increases? A parent can hope…</p>
<p>It’s true that the fees for UIUC are not fixed, but they are included in what you think of as Tuition. We are paying 17,000/yr for tuition and fees for the school of engineering. I am aware that 14K of that is fixed and the other 3K is not (fees). However, The fees portion went up by only a little bit last year…I can’t remember the exact percentage, but I know it was less than what the tuition increase was for new incoming freshman. And I do believe the fees stayed the same for a couple of years in a row.</p>
<p>Also, you need to know, that some of the fees are refundable. There is a window of time each semester where you get the fees refunded. You would save about $190.00 each year if you do that.</p>
<p>OregonianMom,</p>
<p>You are very welcome.
I have not looked at details of purchase this year, but when I bought tuition last year it was discounted ~ 5% by virtue of the school 1, using the prior year’s tuition cost; and 2, giving a 1% discount.</p>
<p>In terms of an investment I think the only decent advice anyone can give these days is to be diversified. I liked this plan for that reason; but also because of the 5% upfront discount; and because of my personal opinion that college tuition is unlikely to underpace general inflation. I thought of the option as similar to treasury I-bonds with the added bonuses of the 5% discount and protection against tuition inflation greater than general inflation.</p>
<p>Oh, I just remembered one more reason: I had money in a state sponsored 529 that I wanted out of because of high admin fees. This 529 was a simple roll-over.</p>
<p>The schools that allow pre-payment and only return the principal if the student leaves before graduation are charging the parents inflation.</p>
<p>Not much of a deal if you ask me.</p>
<p>Oberlin College promised to increase my financial aid package in accordance with its increasing tuition cost each year.</p>
<p>I’m not sure if this is consistent with all students, or just the ones receiving financial aid.</p>