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There are two kinds of 529 college plans: prepaid tuition plans and college savings plans. Different rules apply for each state, so it is important to check out which type of plan is available in your state. Some states offer just one type of plan, others offer both. However, the main characteristics of each plan remain intact. With a 529 prepaid tuition plan, parents who wish to invest in their children’s college education are allowed to purchase college credits or units at locked-in rates. This means that present rates will apply even though the units will not be used for years to come. Mandatory fees and tuition are covered with a 529 prepaid tuition plan. On the other hand, a 529 college savings plan is similar to investing in a stock or bond, and the earnings will depend on the current market. 529 college savings plan can cover almost all the college expenses that your children will have in the future: from tuition, to books, to room and board, as well as all the other mandatory fees. More on 529 Plan In California.