The biggest difference between a prepaid tuition plan and a college savings plan is that a prepaid tuition plan locks in the price of tuition at eligible public and private colleges or universities; a college savings plan does not. All prepaid tuition plans cover tuition and mandatory fees associated with tuition, and some plans include such items as room and board or other defined expenses; college savings plans cover the costs of tuition, room and board, fees, books, and computers. Most prepaid tuition plans set lump-sum and installment payments prior to purchase based upon the beneficiary’s age and number of years of tuition to be purchased; many college savings plans impose limits that exceed $200,000. And while your money may be guaranteed by the state in which you live if you choose a prepaid tuition plan, money directed toward a college savings plan is subject to market risk, may increase or decline in value over time, and is not guaranteed by the state.