With inflation, you can bet that college tuition will be expensive today and even more tomorrow. There are many different sources estimating what it will cost but it will be in the tens of thousands and in some cases in the hundreds of thousands for a four-year college degree. The amount necessary to save for college tuition seems unreachable. Understand that there is no single solution to saving enough money for college and it will take a variety of savings, loan, and investment vehicles to reach that goal. Here are a few of those vehicles you can use to save and pay for future college tuition:

You can use a 529 state-sponsored investment account for investment savings. These accounts are designed to allow you to save tax-deferred for your child’s future college tuition and you don’t have to pay taxes on it if it is used to pay for qualifying educational expenses. The complaints about 529 plans are that they don’t perform very well and they fees and commissions are rather high. It is also hard to predict tax laws as they change all the time.

Your individual retirement account is another option. If you make an early withdrawal from your IRA before age 59 ½, you have to pay a 10% additional tax. However, if you make the withdrawal to pay for qualified educational expenses in the same year that you made the withdrawal, you don’t have to pay this additional tax. The biggest problem with this option is that it affects your retirement income but it is a solution for going to school.

Consider between in-state and out-of-state college tuition. Your tuition will be significantly less when you attend a school in your home state. You may have your heart set on leaving your parents’ nest and going far away but if you really want to go to school, make this comparison of the tuition rates.

Paying for college is a combination of many resources. Many students have a portion of their tuition paid by federally-funded grants like the Pell grant. There are numerous organizations that offer small grants as well. It really is a matter of applying with all of the correct documentation and submitting the forms in the required time.

The Coverdell Education Savings Account is another option to help save for college tuition. The plan, as it is today, allows you to contribute up to $2,000 each year and the savings grows tax free. The contributions are not tax-deductible however. The savings from a Coverdell account can be used to pay for college tuition and other qualifying educational expenses free of taxes. The problem with the Coverdell is that it will sunset in the year 2010 and then you will only be able to contribute $500 annually unless Congress acts to extend the program.