If a family invests in a prepaid tuition plan and the student does not attend college, all money invested and earned in interest is returned.

A. True
B. False



Answer :

Final answer:

In a prepaid tuition plan, not all money may be returned if the student does not attend college.


Explanation:

False. In a prepaid tuition plan, if the student does not attend college, not all money invested and earned in interest is returned. It depends on the specific terms of the plan. Some plans may have penalties or restrictions on withdrawals if the student does not attend college.

For example, if a family invests in a prepaid tuition plan and the student does not attend college, they may not get a full refund of the principal and interest earned.

It is crucial for families to carefully review and understand the terms and conditions of any investment or college savings plan before committing funds.


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