In twenty years, the average four-year college education is expected to cost $115,000 for public schooling and $250,000 for a private education according to a recent poll by College Trends.

The Institute for Higher Education Policy says that parents save only an average of $9,956 for their children's higher education. Money Magazine reported that nearly half of all parents save nothing at all.

So What's All the Excitement?

Higher Contributions: Contributions to each beneficiary can be as much as $265,000 (of course, the earnings can continue to grow in excess of this amount). You can contribute as much as $55,000 ($110,000 jointly) in any single year provided you do not make another contribution for the next five years. Best of all, you can get started with as little as $15 monthly. Business owners can set up an automatic payroll deduction for employees at no charge.

Special Gift and Estate Tax Treatment: The 529 savings plan has powerful estate tax benefits too. All contributors to the fund receive a matched deduction off of their estate, reducing estate taxes. Family or friends, anyone can contribute and receive tax benefits. And, your 529 account is creditor-proof and free of probate.

Earnings Grow Tax-Free: Just like a Roth IRA, the earnings in 529 plans grow completely free of federal income-tax. You or your child will never be taxed on the earnings for qualified distributions. You may also make withdrawals at any time in most cases. There is, of course, a 10% penalty on the earnings portion for unqualified distributions and you will be taxed as ordinary income on the earnings.

Investment Options: You choose how the money is invested. From aggressive to extremely conservative, the 529 savings plan lets you choose from an array of mutual fund groups managed by some of the largest institutional money managers in the world.

Stay in Control: Unlike custodial accounts, the 529 plan donor stays in control of all the funds, even after the beneficiary is of legal age. And, anyone can contribute. There is no age limit on the named beneficiaries, no age limit on the contributors either, and no time limit on the account. That means money can grow tax-free until you, the contributor, distribute the funds.

Choose Any School: The 529 savings plan also allows the beneficiary to attend any accredited college in America and many international universities. And, unlike most pre-paid plans, this savings plan pays for practically any education expense, not just tuition.

Change Beneficiaries at Any Time: Life has many surprises. The 529 savings plan gives you the power to adjust to each turn in the road. You can change beneficiaries as often as you like, provided they are directly related to the original beneficiary. You may even leave the assets invested in the plan for later use.