Paying For College? Check Out The Florida Prepaid Plan

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Saving for college is one of the biggest priorities for most parents

Looking into ways to pay for college? The Florida Prepaid enrollment is now open for this year. Prices are lower than in past years, so take a look.

The Prepaid plan differs in significant ways from Florida’s, or other states’, 529 college savings plans. Here’s how the Florida Prepaid folks explain it:

“The biggest difference between the two is that the Florida 529 Savings Plan is subject to fluctuations in the financial markets, while the Florida Prepaid College Plan is guaranteed by the State of Florida. You can enroll in a Prepaid Plan now through February 28, 2017, and there is no payment due until April 20, 2017.”

The savings plan is invested in market investments, and has the potential to grow more. However, it can also grow less, or even lose money, depending on the investments you select.

The Prepaid’s results are guaranteed to cover the college costs you sign up for, so it can be a good foundation for any college plan or a wise choice for more risk-averse parents.

Years ago, I signed up for the Prepaid plan for my two kids to make sure the basics were covered. I then supplemented that with additional savings in a 529 savings plan. The point is that you can use the Prepaid alone, use it in combination with a 529 savings plan, or just opt for the 529 savings component on its own. The best choice depends on you, so take a look at both type of plans before you decide.

You can go online to learn the details or give them a call at 1.800.552.GRAD (4723).

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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