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Economy hits prepaid tuition programs

Over the last several years prepaid tuition programs have gained popularity as a way to save for college education and hedge against rising costs.  Washington’s GET (Guaranteed Education Tuition) program has been very successful, but like all of these programs the economic slump has affected the investment income needed to fund the purchased credits.  Washington backs its plan, guaranteeing a payout to participants but making the problem more complex for policymakers.  This article has an excellent summary of some of the challenges facing prepaid tuition programs.