Michigan's legislature has approved the only statewide plan to allow parents to prepay their child's tuition to any of the state colleges, state universities, or community colleges. Prepayment may begin any time from the child's birth until his or her 18th birthday, and the money will be invested in a trust. (MSE)

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)