The Florida Prepaid College Plan lets parents and legal guardians who reside in Florida prepay tuition and other specified fees to Florida colleges and state universities. The program also offers prepaid dormitory plans to cover the costs of housing the student, and contributed amounts may also apply to private Florida schools and other colleges and universities in the United States. Students have 10 years from their projected enrollments to use the funds.
The legal guardians of children enrolled in the Florida Prepaid College Plan can choose monthly contribution plans, five-year plans or lump sum payments. If the enrolled child receives a scholarship, the funding covered by the plan, not just contributions, applies toward tuition and fees not covered by the scholarship. If the child doesn't go to college, all fees are refundable or transferable to another student. Funds added to this plan are guaranteed by the state of Florida.
The State of Florida also offers the Florida 529 Savings Plan for those who prefer investing rather than strictly saving for their child's future education. This plan has no set enrollment period, doesn't require the child be of a certain age, and allows for contributions at any time. While the prepaid option is guaranteed, the Florida 529 Savings Plan has risk involved based on the investments chosen.