A new prepaid college tuition plan for private colleges received its final regulatory approval this month under Section 529 of the Internal Revenue Code. The Independent 529 Plan will offer tuition certificates to participating private colleges throughout the U.S. TIAA-CREF Tuition Financing will administer the plan and TIAA-CREF Trust Company, FSB will manage its investments.

"During the next few months, we will get formal re-affirmation from a list of several hundred private colleges regarding their participation as an Independent 529 Plan school," said Doug Brown, president of Tuition Plan Consortium (TPC), the non-profit group that will run the program.

"Participating schools will offer and guarantee a certificate discount on their current year's tuition costs for this plan," said Brown. The program is expected to go live this summer.

The Independent 529 Plan contributions will essentially be buying a "piece" of a private college's tuition at today's prices that will be accepted as payment when the student eventually attends private college. 

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