I just wanted to add that a payment plan can also involve prepayments for college tuition.
In Florida we have the Prepaid College fund. This fund allows a child to attend a public university of their choice and have the tuition covered by this plan that the parents pay into.
The parents get to lock in today’s tuition price for their child to attend college, but they have to agree to the installment plan.
There is a five year installment plan and a monthly plan. Each month the parents must contribute to this plan in order to remain in good standing with the 529 Board.
Once a parent successfully pays off the plan, they receive a certificate that notes that they paid in full. This is really a terrific payment plan that most Florida residents with children participate in.