FLORIDA

Florida College Investment Plan

Type: Savings

Phone: 800-552-4723

State tax deduction for residents: No state taxes

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions:$25 / $283,000

This plan offers an age-based portfolio (100% equities to age 5) plus stock, balanced, bond and money-market portfolios. Expenses are very low at 0.75% per year (plus a $50 enrollment fee). Because the plan is new and is run by the state of Florida, there's no track record for the underlying investments.

Florida Prepaid College Program

Type: Prepaid (contract)

Phone: 800-552-4723

State tax deduction for residents: No deduction

Open to nonresidents: No

Refund provisions: If contract is cancelled, contributions are returned without interest.

Minimum/maximum contributions: $2,827 (or $20 per month) for a two-year tuition-only contract for a newborn / $31,901 for a four-year contract for an 8th-grader that covers tuition, fees and dormitory costs

Enrollment: October through January

Other: To enroll, beneficiary must be in the 11th grade or younger

Luckily, most students who've redeemed prepaid tuition contracts in Florida have used them at in-state colleges -- because Florida is one of a handful of states that pay lower returns if you use your plan out of state.

Over the past ten years, tuition and fees at Florida's public colleges have risen 7% per year on average, but returns are capped at 5% if the money is used out of state -- or if you don't need the prepaid contract because the student dies, becomes disabled or earns a scholarship. Penalties are also harsh if the money is never used for college: You get back your contributions with no earnings whatsoever. However, the plan is fully backed by the state.

Florida charges a $50 enrollment fee. A savings plan is in the works.

State College Savings Plans