Five states have closed their prepaid college tuition programs as assets continue to accumulate rapidly in 529 college savings programs.

In the past year, Ohio, West Virginia, Kentucky, Texas and Colorado have all shut down their state-sponsored prepaid tuition plans. These programs let people pay in advance for a child’s college education at today’s prices. The state could take the money, invest it, and cover the eventual cost of the child's tuition, but the recent market malaise has reduced investment returns and undermined the assumption that costs would be covered.

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