<p>My DD is going to be a full paying MIT student this fall, so I have couple of questions.
1. Does MIT allow prepaying of 4 years of tuition?
2. If it does than will it make sense to prepay?</p>
<p>With interests rate so low and the tuition rates increasing more than 4% it might make sense to payoff the tuition now than next year if we can lock in this year tuition for 4 years.</p>
<p>What kind of protections are build in for you? If she gets mono junior year and has to take a medical leave, how is that handled? If she transfers (not that she will) is there a penalty? Otherwise I can see how it would be attractive. Tuition never seems to go down.</p>
<p>This is a good question to ask at CPW. Drop by the financial aid office and see what they have to say.</p>
<p>POIH-
Independent Prepaid 529 Plans
[Prepaid</a> Tuition Plans - 529 Plans for College | Financial Aid Finder](<a href=“http://www.financialaidfinder.com/financial-aid/financial-aid-programs/529-college-savings/prepaid-tuition-plans/]Prepaid”>Prepaid Tuition Plans - 529 Plans for College)</p>
<p>These plans are not as attractive to most as they used to be given that it’s probable private colleges will not be increasing tuition at anywhere near the rate they were before this recession. I’d stick my money in the market instead personally.</p>
<p>To my knowledge, MIT does not allow tuition prepayments beyond the current semester.</p>
<p>And it would not be a good idea in any case. Many students at MIT graduate in 7 semesters. Many students at MIT take a semester or a year off.</p>
<p>My bet is that even if you were to prepay tuition for 4 years, you would be billed for any incremental tuition if there is a tuition increase. You are signing on to pay tuition for senior year at the then prevailing rates.</p>
<p>Thanks, I also checked the MIT website and didn’t find any mentioning of prepaying of tuition. It seems the best to go with their system of paying for each semester at a time.</p>
<p>I tried that gambit in 2002 for Carnegie Mellon. I wanted to rid myself of market risk if they could take the risk and full payment. It was a long three years from May 1 2002 to July 1, 2005, before I could the end of the dark market and future recovery. </p>
<p>The best formula was to borrow low and hope that markets recovery at a rate higher than the borrowed interest rate.</p>
<p>There is the Independent529 that allows you many options, but at the time I looked at it, there was a minimum time of investment before the tuition guarantees kickin. It could’ve been a good play if we had a 2nd but not.</p>
<p>At one time I was also toying with the idea of a synthetic but I needed more knowledge and economist bro would be reluctant to help. </p>
<p>Congratulations, I thought she was going to Stanford. BTW, Carnegie Mellon is better :)</p>