Rising college costs make saving for higher education feel overwhelming, but prepaid tuition plans offer a powerful way to lock in tomorrow’s tuition at today’s rates. These state-sponsored programs allow families to purchase future credits at current prices, effectively hedging against tuition inflation. While 529 savings plans are more widely known, prepaid tuition plans operate differently: they guarantee that your purchased credits will cover tuition regardless of future increases. However, these plans are not available everywhere, and each state’s program has unique rules, enrollment windows, and residency requirements. This state by state guide to prepaid tuition plans breaks down which states offer these programs, how they work, and what you need to know before enrolling.

How Prepaid Tuition Plans Work

Prepaid tuition plans are essentially contracts between a family and a state. You pay a lump sum or make installment payments to purchase a specific number of credits or semesters at a public college in that state. In return, the state guarantees that those credits will cover the same amount of tuition and mandatory fees when your child enrolls, even if tuition has risen significantly. This is different from a 529 savings plan, where your investment grows based on market performance and can be used at almost any college. Prepaid plans are generally limited to in-state public institutions, though some states offer private college options or allow portability to out-of-state schools at a reduced value.

Most prepaid tuition plans are administered by state agencies or nonprofit organizations and are backed by the full faith and credit of the state. This means the state legally guarantees the benefits, which provides a level of security that market-based 529 plans cannot offer. However, because the state assumes the investment risk, these plans often have strict eligibility rules, limited enrollment periods, and residency requirements. For example, many plans require the beneficiary or the account owner to be a state resident at the time of application. In our guide on Prepaid Tuition Plans Explained: How They Work and Key Benefits, we detail the mechanics and advantages of these programs.

States With Active Prepaid Tuition Plans

Not every state offers a prepaid tuition plan. Some states have closed their programs to new enrollees due to funding challenges, while others never created one. As of 2025, approximately 11 states plus the District of Columbia operate active prepaid tuition plans that accept new applicants. Below is a summary of the most prominent programs, including key features and enrollment details.

Florida Prepaid College Plan

Florida runs one of the largest and most well-known prepaid tuition plans in the country. The Florida Prepaid College Plan offers several options: a 2-year or 4-year Florida College Plan (for state colleges), a 4-year University Plan (for state universities), and a 1-Year University Plan. Families can pay in a lump sum or choose monthly payment terms for up to 18 years. The plan covers tuition and mandatory fees, and optional add-ons include dormitory housing and a local fee payment plan. Enrollment windows typically open in February and close in April each year, though newborns can be enrolled within 12 months of birth.

Texas Tuition Promise Fund

Texas offers the Tuition Promise Fund, which allows families to purchase tuition units at current prices for use at any Texas public university or college. Units are priced based on the average tuition at Texas public institutions, and you can buy between 1 and 300 units per beneficiary. The program guarantees that each unit will cover a fixed percentage of tuition, regardless of future increases. Enrollment generally opens in September and runs through November. One unique feature is that Texas residents who move out of state can still use the plan, but the benefit may be reduced if the beneficiary attends a private or out-of-state school.

Washington Guaranteed Education Tuition (GET) Program

Washington’s GET program lets families purchase units that are guaranteed to cover a percentage of tuition at Washington public colleges. Each unit is equivalent to 1% of the current tuition and state-mandated fees at the state’s most expensive public university. The program is backed by the state’s guarantee, and unused units can be refunded or transferred to another family member. GET also offers a unique feature: if your child attends a private or out-of-state college, the units can be converted to a cash value based on the current unit price. Enrollment is open year-round, making it convenient for families to start saving at any time.

Michigan Education Trust (MET)

Michigan’s MET program is one of the oldest prepaid tuition plans in the nation. It allows families to purchase contracts for future tuition at any of Michigan’s public universities. Contracts are available for 2-year or 4-year terms, and you can choose from several payment options including lump sum, monthly installments, or a combination. MET benefits are guaranteed by the state, and if your child attends a private college in Michigan, the plan pays an equivalent amount to the private school. Enrollment periods are typically limited, so families must watch for announcements from the Michigan Department of Treasury.

Other Active State Programs

Several other states maintain active prepaid tuition plans with varying features. These include:

• Illinois: The Illinois Prepaid Tuition Program (now part of Bright Start) is closed to new enrollments, but existing contracts remain honored.
• Maryland: The Maryland Prepaid College Trust offers contracts for 4-year or 2-year public colleges, with optional add-ons for room and board.
• Massachusetts: The U.Plan program allows families to prepay tuition at participating Massachusetts public and private colleges.
• Mississippi: The Mississippi Prepaid Affordable College Tuition (MPACT) program covers tuition at public universities and community colleges.
• Nevada: The Nevada Prepaid Tuition Program is closed to new enrollments.
• Pennsylvania: The Pennsylvania 529 Guaranteed Savings Plan (GSP) offers prepaid tuition options for state-related universities.
• South Carolina: The Future Scholar Prepaid Tuition Plan is available for public colleges in the state.
• Virginia: The Virginia529 Prepaid Plan covers tuition at public colleges and universities in Virginia.

Each of these programs has specific residency requirements, enrollment windows, and payment structures. Families should visit the official state program website for the most current information.

States Without Active Prepaid Tuition Plans

Many states do not offer prepaid tuition plans, either because they never created one or because they suspended their programs. For example, Ohio, Colorado, and New York had prepaid plans that are now closed to new enrollees due to underfunding or low participation. In these states, families must rely on 529 savings plans, Coverdell Education Savings Accounts, or other investment vehicles to save for college. While 529 plans offer tax advantages and flexibility, they do not guarantee the value of your savings against tuition inflation. This is an important distinction for families who want certainty about future costs.

If you live in a state without a prepaid plan, consider using a 529 savings plan from any state. Most states offer tax deductions for contributions to their own plan, but you are not required to use your home state’s plan. For example, a family in Ohio can open a 529 plan from Utah or Nevada, which may have lower fees and better investment options. However, you will not receive the state tax benefit unless your state offers it for out-of-state plans. Always compare fees, investment performance, and tax incentives before choosing a 529 plan.

Key Considerations Before Enrolling

Before purchasing a prepaid tuition plan, evaluate several factors to ensure it aligns with your financial goals and your child’s future educational plans. First, consider residency requirements. Most plans require the account owner or beneficiary to be a state resident at the time of enrollment. If you move out of state later, the plan may still be usable, but the benefit could be reduced. Second, think about portability. If your child attends a private college or an out-of-state public university, the plan may pay a lower amount or require conversion to a cash value. Third, review the payment options. Lump-sum payments lock in the lowest price, but monthly installments can make the plan more affordable for families with limited cash flow.

Another critical factor is the financial health of the state program. Because prepaid tuition plans are guaranteed by the state, they are generally safe. However, some plans have faced funding shortfalls in the past, leading to benefit reductions or closures. Before enrolling, research the program’s funding ratio and any recent changes to benefits. Finally, understand the impact on financial aid. Prepaid tuition plans are considered parental assets for federal financial aid purposes, which means they are assessed at a lower rate than student assets. However, distributions from the plan are treated as student income, which can reduce aid eligibility. Consult a financial aid professional to model how a prepaid plan might affect your child’s aid package.

Frequently Asked Questions

Can I use a prepaid tuition plan if my child attends a private college?

Most state prepaid plans are designed for in-state public colleges. Some plans allow you to use the benefit at private colleges within the state, but the payout is typically limited to the average public college tuition rate. You may receive the cash value of your purchased units, which you can then apply to the private school’s tuition. Check your plan’s portability policy for specific details.

What happens if my child does not go to college?

If your child decides not to attend college, you can usually get a refund of the money you contributed. However, refund policies vary by state. Some plans refund the full amount you paid, while others deduct a small administrative fee. You may also be able to transfer the account to another eligible family member, such as a sibling or cousin, without penalty.

Are prepaid tuition plans better than 529 savings plans?

It depends on your priorities. Prepaid tuition plans offer certainty: you lock in future tuition at today’s prices, regardless of market performance. They are ideal for families who are confident their child will attend an in-state public college. 529 savings plans offer more flexibility: you can use the funds at any accredited institution nationwide, and investment returns can potentially exceed tuition inflation. However, 529 plans carry market risk, and poor returns may leave you short of your goal. Many families use both strategies: a prepaid plan for base tuition and a 529 plan for other expenses like room and board.

Can I open a prepaid tuition plan for a grandchild?

Yes. Most state prepaid plans allow grandparents, other relatives, or even family friends to open an account for a beneficiary. The account owner retains control over the funds, which can be useful for estate planning purposes. However, the beneficiary must meet the plan’s residency requirements, which typically means the beneficiary or the account owner must live in the state offering the plan.

Making an Informed Decision

Choosing a prepaid tuition plan requires careful research and a clear understanding of your family’s financial situation and educational goals. Start by determining whether your state offers an active prepaid plan and review its enrollment calendar. If your state’s plan is closed or unavailable, explore 529 plans or other savings tools. For families who want the security of a guaranteed tuition rate, prepaid plans can be an excellent foundation for college savings. For those who value flexibility and potential investment growth, a 529 plan may be a better fit. Whichever path you choose, the key is to start early and save consistently. For additional guidance, visit College & Tuition for resources on college affordability, financial aid, and scholarship opportunities. Our tools can help you compare costs and find programs that match your needs. Learn more