Two great ways to save money for college. (Personal Business).(529 College Savings Plans, Education Savings Plans)

Jewelers Circular Keystone, June, 2003 by Taylor, Deborah

Twenty years from now, the cost of attending a private four-year college or university will exceed $250,000, according to research from The College Board, a nonprofit association that helps students reach their educational goals. But recent legislation has improved the benefits available in two existing tax-advantaged college-savings programs: 529 College Savings Plans and Education Savings Plans (formerly known as Education IRAs). Here are highlights of both plans to help you decide what's best for your family.

What is the 529 Plan? Named for Section 529 of the Internal Revenue Code, a 529 plan is an investment vehicle for college expenditures. The plans also are called Qualified State Tuition Plans because they're state-sponsored programs. Contributions to...