How to Save for College and Education in Florida

Planning and saving for education in Florida is worth doing right. You have three powerful tools to work with: a 529 College Savings Account, the Florida Prepaid College Plan, and Bright Futures scholarships. Used in the right order and often together, they can stretch every dollar for your student.

The Three Tools:

• 529 College Savings Account

  Investable educational account that allows for tax-deferred growth and tax-free withdrawals for tuition, fees, books, computers, and room and board for half-time or more. Works at most accredited colleges nationwide, including private college and grade school. You control contributions and the beneficiary.
  

• Florida Prepaid College Plan

  Pre-buys in-state public tuition and most mandatory fees at today’s prices. Guaranteed by Florida statute. Optional dorm plan. Pricing is age-based during open enrollment.
  

• Florida Bright Futures Scholarships

  State merit aid that can cover a large share of in-state public tuition if GPA, coursework, test, and service-hour rules are met. Can stack with Prepaid. Prepaid offers scholarship refund options. A 529 can still cover housing, books, and other costs.
  

The Two Main Factors to Consider:

• Florida public school is a likely choice for your child, or you want price certainty:

  Start with Florida Prepaid. Layer a Florida 529 for room, board, books, tech, and flexibility.
  

• Private K-12 or out-of-state college is likely, or you are unsure:

  Lead with the Florida 529. If attending a Florida public school becomes more likely later, consider adding Florida Prepaid to cap tuition risk.
  

Option 1: Florida Prepaid College Plan

How it works: Buy defined blocks of in-state public tuition and most state-mandated fees. Benefits are financially guaranteed by the State of Florida. An optional dorm plan exists, but housing availability is set by each university. Pricing is age-based and posted during open enrollment (typically February 1st – April 30th). See link here My Florida Prepaid.

Why it may work for you: The prepaid program is a clean, predictable hedge against tuition inflation with a statutory guarantee. Ideal for families planning on Florida public college or university or those who dislike surprises.

What if plans change: If your student attends a private, out-of-state, or eligible international school, Prepaid pays the same dollar value it would have paid a Florida public school, and you cover any difference. If your student earns Bright Futures or other scholarships, you can keep the plan for remaining costs or request a scholarship refund equal to what the plan would have paid. Plans are transferable to another eligible family member.

Why it may not be a fit: Coverage is limited to the fees the plan defines. Some university-specific charges can sit outside scope. If you want broad flexibility or expect a private or out-of-state path, you still need a 529 for the rest.

Option 2: A 529 Savings Plan

How it works: A market-based 529 sponsored by a state board (does not have to be Florida's program). This investment account allows you to make contributions which are eligible to be withdrawn tax-free for tuition, fees, books, computers, and room and board for half-time or more. This account can also cover K-12 tuition up to $20,000 per student per year, and student loan repayment up to 10,000 dollars lifetime. Usable nationwide at most accredited colleges and programs.

Why it’s better when you want flexibility:

• Private-school advantage. If private or out-of-state is likely, make the 529 your core. It pays those tuitions just like in-state and also covers housing and equipment.

• Start early and automate. The earlier you fund, the more compounding works for you. Set a monthly draft. Invite grandparents to contribute. Front-load if cash flow allows.

• Ownership control. Keep for graduate school or change the beneficiary within the family.
  

What if plans change:

• Leftovers. You can roll up to 35,000 dollars lifetime from a long-standing 529 into the beneficiary’s Roth IRA by direct trustee transfer. You must respect the annual Roth contribution limit, the 15-year account age rule, and a five-year lookback on recent contributions. The beneficiary must have compensation at least equal to the rollover amount for that year.
  

• Generational flexibility. After any Roth rollover, you can still change the 529 beneficiary to another child, a sibling, a cousin, or keep the account for a future grandchild. This is how families build generational educational wealth without wasting contributions.
  

Financial aid posture that matters: Parent-owned 529s count as parent assets on the FAFSA. Distributions from grandparent-owned 529s are not reported as student income beginning with the 2024-25 FAFSA, though some CSS Profile schools may still ask about them.

Why it may not be a fit: If price assurance on Florida public tuition is paramount, markets and future tuition can create a gap. Add at least one Prepaid year for a clean hedge.

Consider a Combination:

• Prepaid base + 529 for the rest

  Lock in 2 to 4 years of in-state tuition with Prepaid. Use a 529 for housing, books, and any shortfall or school pivot.
  

• 529 first + one Prepaid year later

  Stay flexible if you are unsure today. If Florida becomes likely, add a 1-Year University Plan to cap tuition risk.
  

• Grandparent strategy

  Grandparents can own and distribute from their own 529 without creating student income on the FAFSA. Coordinate with CSS Profile schools.
  

How to Begin Saving:

• Choose your primary path: Prepaid for price certainty, 529 for flexibility or a combination of both.

• If Prepaid fits, price years and confirm open-enrollment dates and costs. In 2025, enrollment ran Feb 1 to Apr 30 and newborn 1-Year University was advertised from about 29 dollars per month. Verify current figures.

• Open a Florida 529, set a monthly draft, and fund early and often if private or out-of-state is likely.

• Align ownership with aid strategy. Parent ownership for baseline control. Grandparents can own separate 529s but check CSS Profile policies.

• Track qualified expenses, including K-12 tuition up to 10,000 dollars per year and student loan repayment up to 10,000 dollars lifetime.

• If you might overfund, preserve 529 longevity and contribution records so the future 529 to Roth rollover is available under the 15-year rule, five-year lookback, annual Roth limits, and compensation requirement.

• For unused balances after any Roth rollover, change the beneficiary to another child or keep the account for future grandchildren.
  

  Using these tools wisely and aligning them with your anticipated needs and current preferences will create an efficient, effective education plan. The most important step is taking action early and funding consistently.