A changing economy in Michigan means that education beyond high school, whether it's a degree or training for a specific skill or job, is more important than ever. But in Michigan, low- and middle-income families are seeing college costs continue to rise--for many, rising beyond their reach. Michigan has some of the highest public tuition levels…

Growing numbers of colleges and universities, as well as independent schools, are targeting parents, grandparents, and other nonalumni friends for gifts to meet institutional needs and, at many public institutions, replace appropriations lost to Draconian state cuts. Such efforts have taken root despite parents shouldering ever-climbing college…

The president of the Education Commission of the States urged state policy-makers to proceed cautiously in developing plans to allow parents to pre-pay college tuitions years in advance at discounted prices. Reciprocal agreements between the states and exploration of other options are suggested. (MLW)

A Missouri proposal that parents be allowed to set up special savings accounts for their children's college education that would be exempt from state income tax is described. It is compared to a plan in Michigan that allows parents to prepay tuition at colleges in the state. (MLW)

Governor Blanchard of Michigan announced that the IRS planned to allow parents to participate in the state's prepaid-tuition program without paying additional federal income tax. A broader ruling will take additional time to formulate. The federal government is considering a national plan to allow tax breaks for college savings. (MLW)

The Michigan Education Trust, in which parents prepay a tuition contract for their child's college education, and the proposed Kentucky Trust, a tuition savings plan, are compared with focus on such issues as risks, incentives, and tax implications. (MSE)

This book is designed as a guide to existing and proposed higher education tuition financing plans. The first chapter looks at recent patterns in higher education financing and participation noting the rapid increase in tuition and other college costs and the corresponding changes in participation patterns. Chapter 2 examines tuition prepayments,…