What is a prepaid tuition plan and is it worth it?

A prepaid tuition plan lets you lock in today's tuition rates at participating public colleges, paying now for credits your child will use years later — hedging against tuition inflation. Most are state-run and limited to that state's public universities, though some let you transfer the value elsewhere (often at a less favorable rate). They typically cover tuition and mandatory fees only, not room, board, or books. The trade-offs: limited flexibility if your child attends a private or out-of-state school, residency requirements, and enrollment windows. Some plans have faced funding shortfalls. A prepaid plan can make sense if you're confident your child will attend an in-state public school and you value locking in costs. For broader flexibility, most families prefer a savings-style 529.