The Importance of a 529 Plan

The reason college is so expensive is because you can borrow unlimited sums through the federal loan programs, which are then underwritten by income based repayment. If that goes away, college costs will plummet and if it doesn't go away and it sticks around, college prices will continue to grow much faster than the rate of inflation. So I think, you know, if you are very wealthy, then 529s make a ton of sense. Well, it's very wealthy, somebody with ... projected net worth in the millions going into college with their kids.