I have a 4 month old child. I know many on here have questioned the value of higher education on this site before. I have my own questions in that regard, yet I do find myself thinking that it would be wise to set some money aside for my child's future education.
In Florida, there is a prepaid college education plan.
The program I'd chose covers 4 years at a state uni. The three options for me are: Lump sum payment of $48,735, 55 monthly payments of $907.90 totaling $49934, or 211 monthly payments of $304.57 totaling $64,264. The interest is about 3.95% for the payment plans. All of these are affordable to me.
The program is run and guaranteed by the state (I can't lose money in it). It is fully refundable at any time (okay, $50-100 in fees). It is protected from creditors. I can transfer the beneficiary to another person (e.g. if I had another child). If the child qualifies for a scholarship I will be refunded. If the child goes to an out of state or private school, it will pay that school the same amount of benefit that I would have gotten at an in state school.
Program site: http://www.myfloridaprepaid.com/
Any thoughts on whether to do this or not? Which payment option and why? Thanks, in advance.