<p>I am not sure how your specific pre paid tuition plan would work. I do know a family who did pre pay Duquesne University tuition. If the student did not go to Duquesne, the money was refundable to some degree, not sure what the terms were, or the interest credited. It might well be that if he did go to another school, that pre paid tuition plan would be considered an asset on the schools financial aid forms and assessed accordingly. However, Duquesne may consider it prepaid tuition, particularly if there is some freezing of tuition rates involved. Is the plan you are using somehow tied into this one school more than the other? You need to call financial aid, ask for a telephone appointment with the director, and then discuss the situation with him. Arguing this on the fly is not going to be as useful as having a time carved out where he can focus on your D's file and the issue at hand.</p>