What's The Difference Between Prepaid Tuition And 529 Plans?

The main difference between a prepaid tuition plan and 529 plan is that prepaid tuition plans allow you to lock in tuition credits at today's prices.Prepaid tuition plans and 529 college savings plans are specialized savings accounts used for future college costs. Prepaid tuition plans act like defined benefit plans, while 529 plans act like defined contribution plans.There are other significant similarities and differences between them. Get the details for each to figure out which plan makes more sense for your college needs.

A federal appeals court heard arguments on Friday over whether the Education Department can further delay a court-approved settlement that promises loan discharges, payment refunds, and credit report corrections to more than 200,000 student loan borrowers who say they were defrauded by their colleges.The case, Sweet v. McMahon, has been working through the courts since 2019 (as a result, the case has changed names a few times: Sweet v. DeVos and Sweet v. Cardona). The settlement, valued at up to $12 billion, set firm deadlines for the Department to process borrower defense to repayment applications. The Department has missed those deadlines and asked for extensions multiple times. So far, those requests have been denied.During Friday’s hearing before the Ninth Circuit Court of Appeals, Judge Kim McLane Wardlaw offered a blunt assessment: “The time for negotiating is over. You missed your deadline.”The court is now considering the Department’s motion to stay the settlement while it appeals.

The Department of Education and the U.S. Treasury Department announced a new interagency agreement on March 19, 2026, that will shift operational control of defaulted federal student loan collections from Education to Treasury. This comes as nearly 7.7 million student loan borrowers holding $180 billion in student loans are in default.The move, which the administration has branded the “Federal Student Assistance Partnership,” marks a big step forward in dismantling the Education Department in what officials described as the equivalent of the “fifth-largest commercial bank in the United States.”Under the agreement, Treasury will immediately take over collecting on defaulted student loan debt, using private collection agencies to help borrowers in default enroll in rehabilitation programs or return to good standing. Treasury will also absorb the operations of FSA’s Default Resolution Group, which manages the Default Management and Collections System (DMCS). In future phases, Treasury would expand to managing non-defaulted loans and potentially other FSA functions, including FAFSA administration.It's important to realize that Treasury already played a large role in collections, but this is now administrative control of the bigger program.

Hundreds of thousands of college students are enrolled in degree and certificate programs that, under new federal law, may soon be cut off from federal student loans. The One Big Beautiful Bill Act, requires colleges to prove their programs actually improve graduates’ earning power, and those that don't risk losing access to federal student loan programs.The framework, informally called “Do No Harm,” sets a new standard: if a program’s graduates earn less than comparable workers who never attended college at all, the program can no longer receive federal loan funding.The Department of Education has already released preliminary data on nearly 50,000 programs, and the results reveal a clear pattern of which fields are at risk — including some where a college credential is legally required to work in the profession at all.Remember: It's not just about the degree (like B.S. Business). It's about the program and school (such as University of Vermont, Bachelor's of Science in Plant Sciences). It's individual programs and degrees granted by individual colleges that are at risk.

Federal Student Aid released its latest quarterly data update, and the numbers paint a stark picture: 7.7 million borrowers with $180 billion in outstanding federal student loans are now in default as of December 2025.The quarter ending in December marked the first time many borrower accounts could the threshold for default following the end of the pandemic-era payment pause and the subsequent on-ramp protection period.While the number is large, FSA noted that it mirrors the default count from December 2019, when 7.7 million recipients with approximately $168 billion in federal student loans were in default. The $12 billion increase in default balances reflects the growth in the overall portfolio during the intervening years.However, the Department of Education has still continued to pause some collections efforts in light of all the major student loan changes happening.

The tax deadline is almost here! Here are some last minute tax reminders if you're still working on filing your taxes.Although it might not be the most enjoyable financial task, it's a necessary obligation that we each undertake every year. And if you use great tax software, filing taxes doesn’t take as much time as you may dread.But tax filing time isn’t only about filing returns. There are things you can do today to help you save money on your tax bill, and help you save time on filing.Here are the best last-minute tax tips to consider this season.

The Department of Education’s income-driven repayment application backlog has dropped to its lowest point on record, according to a new court filing submitted March 16 (PDF File).But that progress is overshadowed by a continued delays on IDR loan forgiveness and a growing queue of public servants waiting for PSLF buyback decisions.The data comes from the latest status report filed in American Federation of Teachers v. U.S. Department of Education, a federal lawsuit spearheaded by the teacher's union that requires the Department to provide monthly updates on its loan servicing operations.

Tax refunds are running more than 10% larger this filing season, the IRS reported, with the average individual refund reaching $3,742. That's up from $3,382 at roughly the same point in 2025.The increase is being driven in part by new deductions signed into law by President Donald Trump that are appearing on returns for the first time.The IRS released its cumulative filing season statistics through Feb. 27, 2026, comparing them to the same period in 2025. The data covers roughly 51.5 million individual returns received out of approximately 164 million expected before the April 15 deadline.

The federal government quietly stopped independently checking whether student loan servicers are keeping accurate borrower records (and stopped monitoring the quality of calls with borrowers) in February 2025. More than a year later, it still has not resumed those reviews, according to a new report released by the Government Accountability Office.The findings come at a precarious moment for the nearly 43 million Americans with federal student loans. Major repayment plan changes are underway, millions of borrowers are in or approaching default, and the very oversight designed to catch servicer errors has gone dark.For an administration that is allegedly focused on reducing waste and fraud, it's concerning that government contractors overseeing a trillion dollar portfolio of loans impacting 43 million Americans are not being closely monitored or held accountable.

The SAVE student loan repayment plan is dead — and a federal appeals court just made that official.The U.S. Court of Appeals for the Eighth Circuit ruled on March 9, 2026 (PDF File) that a lower court wrongly dismissed the Republican states’ lawsuit against the plan, directing the district court to enter a December 2025 settlement agreement that permanently bans the Biden-era income-driven repayment program. The request to force the joint settlement was one of the alternatives presented in the GOP appeal to the 8th Circuit Court.Here's what borrowers need to know.