Experts Talk About Independent 529 Plan

When experts look at college savings, they like what they see in Independent 529 Plan:

Suze Orman, Detroit Free Press: "These college savings accounts come in a few different flavors: prepaid plans, standard savings plans and my favorite, the Independent 529 Plan. Just by investing in an Independent 529, you can receive a credit for a certain percentage of future costs at more than 200 participating schools. For example, a $10,000 investment might earn you 40% of future costs at College A and 50% at College B." (April 7, 2008)

Ron Lieber, The Wall Street Journal: "Most investments don't come with a guarantee. But a college-savings account called the Independent 529 plan offers an enticing promise: Hand over money now, and you can pay today's private-school tuition rates at 257 institutions for tomorrow's students, even those who won't use the money for as many as 30 years, including unborn children. The offer is guaranteed; the schools are on the hook if the plan's investments tank. Thus, you don't have to tinker with fund allocations as you would with a savings 529." (September 30, 2006)

Jane Bennett Clark, Kiplinger’s Personal Finance: "Member schools sell tuition credits at a minimum 0.5% discount off the current price and guarantee a refund (plus or minus 2%) if a child attends a school outside the plan. More good news: The new pension-reform law made permanent the favorable tax treatment enjoyed by 529 plans and their sister programs, prepaid plans. Previously, the tax provisions were set to expire after 2010." (October 1, 2006)

Thomas F. Black, Contra Costa (CA) Times: "Not to be outdone, a consortium involving hundreds of private institutions has devised a rival plan, touted as 'guaranteed and risk-free.'" (September 8, 2006)

Eileen Ambrose, Baltimore Sun: "The Independent 529 Plan is three years old this week, and the prepaid tuition plan for private colleges has reason to celebrate… And the icing on the birthday cake: The Johns Hopkins University is a new member. And schools in the program are required to give a minimum discount, (so) the more years the family is in the plan, the more the discount is worth." (September 5, 2006)

Jane Bryant Quinn, Newsweek: "Why do I like prepaids…First, prepaids are simple…Second, guarantees give you peace of mind. Currently, 18 states maintain prepaids. Four plans (Kentucky, Ohio, Texas, West Virginia) are closed but may reopen. There's also a prepaid for private colleges called the Independent 529 Plan. It sells future tuition at a discount, usable at more than 250 schools. A plan that’s simple, provides peace of mind – and gives buyers equal access to federal student aid. What’s not to like?" (August 14, 2006)

Marshall Loeb, MarketWatch.com: "Wouldn't it be great if there were a way to hedge against the ever-increasing cost of college tuition? Well, there is. Independent 529 is a vehicle that allows you to purchase future semesters at college with today's dollars and do it tax-free." (June 5, 2006)

BusinessWeek: "Of the 19 prepaid plans on the market, 18 are sponsored by states. The other is the privately backed Independent 529 Plan, which locks in today's tuition at 255 participating private universities, including Princeton and Rice." (April 3, 2006)

Minneapolis Star Tribune: "No fees, low contribution requirements and no taxes on your account's increased value make the plan worth a look." (February 19, 2006)

USA Today: "One alternative for students interested in attending a private school is the Independent 529 Plan. Such a plan lets you lock in future tuition costs at more than 250 private colleges and universities." (February 14, 2006)

Stanford Daily:  "'The University sees the Independent 529 Plan as another option for making Stanford tuition more affordable,’ said Director of Financial Aid Karen Cooper." (February 13, 2006)

Newark Star-Ledger:  "Independent 529 Plan is for private colleges and universities, (and) allows parents to avoid tuition inflation.  More than 250 private colleges and universities participate, including Princeton, M.I.T., Stanford, and Notre Dame. The most obvious choice to save for college is a 529 plan."  (December 15, 2005)

CNNMoney.com: "'Some believe the Independent 529 is the safer investment. From a risk standpoint the Independent 529 is certainly a different creature,' said Joseph Hurley, founder and chief executive of the Web site savingforcollege.com. 'People looking at this program are really looking at it as more of an insurance policy against the cost of rising tuition.'" (August 25, 2005)

University Business: "'Anything that independent colleges and universities can do that helps enable more parents and students to consider them as an option, and be able to afford private college higher ed, creates a win-win situation for both families and colleges,' said Mary Jo Maydew, Vice President for Finance and Administration, Mount Holyoke College, South Hadley, Mass. 'Independent 529 Plan helps parents, grandparents, and others save for their children’s higher education, and thereby encourages them to do so.'"  (August 2005)

Baylor Magazine:  "'The Independent 529 Plan is a good option overall for Baylor alumni and the University,' said Bob Spence, Assistant Vice President for Financial Services and Treasurer.  'I was running out of years to take chances with market volatility and I thought that this [plan] offered some peace of mind that I needed,' said Gregg Eppler, Baylor University, class of ‘86." (Spring 2006)

Joseph Hurley, Dallas Morning News: "Experts who follow 529 plans say the Independent 529 Plan is a good concept. 'I like the fact that it offers another option for families,' said Joseph Hurley, chief executive of Savingforcollege.com." (September 8, 2003)

Raymond Loewe, Forbes: "I think grandparents are going to love it, because they tend to take a conservative approach. People who have been burned in the market - and a lot of them have - will like this approach." (August 11, 2003)