This is the most popular type of 529 plan, largely because it’s also the most flexible. Education savings plans can be used to cover a wide variety of expenses associated with higher education, including tuition, fees, books, equipment, and room and board, which is why they were once called “college savings plans.”

In more recent years, their acceptable uses have expanded to encompass private secondary or elementary school, trade school, or apprenticeships; even student loans are now covered by education savings plans, though only up to a certain amount. Education savings plans also make it easy to use your funds at virtually any accredited college or university. Almost every state offers a type of education savings plan, and many offer more than one.