If you think your child is going to be a private school student, perhaps the I529 plan would be better suited . Although the colleges that participate in these plans are still small in number, the benefits can be huge. The I529 plan focuses on savings for private schools.

For example, a deposit into a I529 plan of $10,000 would be calculated in the following manner: the tuition that that was charged in the calendar year the deposit was made would be the amount used for the tuition when the child attends. If your child for instance, planned on attending a private school in 2022, the college would apply the $10,000 you deposit as a percentage against whatever the tuition was in 2006. It covers only tuition and fees although (regular 529 plans also cover room, board and books). These plans are best when used with other savings such as a regular 529 plan and are probably best used once your child seems like they are a candidate for an upper-crust education.

You should also consider the benefit of Series I US Savings Bonds. You can still save for college using them. If you do use them for college, they are free of federal income taxes and more importantly, the money isn't locked-up in a specific account.