<p>My family apparently never set aside cash for my college tuition (in a specifically designated account, for example). We aren't in debt, and there is money to pay it off in full, but I was wondering if there's any way we can lower the brunt of the cost.</p>
<p>For example, our state's (WA) 529 college savings plan requires a two-year waiting period till its usable. I graduate HS in June, so it wouldn't be till my Junior Year in college when its accessible. It wouldn't have gone up too much, but from 2010 to 2011, the price of each credit jumped by $50. (<a href="http://www.get.wa.gov/documents/Unit%20Prices%20Over%20Time.pdf%5B/url%5D">http://www.get.wa.gov/documents/Unit%20Prices%20Over%20Time.pdf</a>)</p>
<p>Is it worth purchasing and saving education credits now? What else is there that can be invested for a very short term, even if the payout isn't so much? My family doesn't like to rely on stocks and bonds, and CDs don't have that high of a turnaround. Any suggestions on where to put the cash?</p>
<p>First MOST parents don’t have money set aside for college costs. Second, talk to your parents about how they plan to pay for college.</p>
<p>Most colleges offer an installment plan for your fixed costs. When you decide on the college that you will attend, you can find out how that college’s plan works.</p>
<p>Firstly there is no requirement that you need to invest only in your states plan. You can actually invest in any state’s plan. However, there are state income tax benefits that accrue by investing in a state 529 plan. Some are generous, others like AZ are not. However that does not matter to you as WA has no state income taxes and so there are no tax benefits. Hence you could invest in IL’s plan or OR’s plan etc. Check out the plans and see what makes sense.</p>
<p>You can put it into a money market fund or bond fund in any plan you like. Vanguard, Fidelity and TIAA CREF for example have low cost funds. The advantage is that you do not pay tax on the interest if used for qualified educational expenses.</p>
<p>[section</a> 529 plans - About.com : Saving for College](<a href=“http://collegesavings.about.com/lr/section_529_plans/314422/1/]section”>http://collegesavings.about.com/lr/section_529_plans/314422/1/)</p>
<p>Also remember, you are not going to take out the money at one time. You pay a semester at a time, so money that is not required immediately can grow and what little interest you get, you do not pay taxes.</p>