Hundreds of colleges have consented to a plan designed to aid students by cushioning the blow of rapidly rising tuition.

The Independent 529 Plan will allow parents concerned with tuition bills at roughly 300 colleges to pay several years of tuition in advance of a likely increase.

The Securities and Exchange Commission approved the plan earlier this week.

For instance, a $12,000 certificate for a college that presently charges $24,000 would secure half a year’s tuition, even as prices rise between the time the investment is made and the student’s enrollment.

Due to the fact the participating institutions range from regional to Ivy League colleges, the percentage of the tuition covered by an investment would depend on the school attended. A $5,000 dollar investment would cover a smaller portion of tuition at a more expensive Ivy League institution compared to a smaller regional school.

The program was implemented to bridge the gap between mounting tuition and declining investment returns, according to plan officials.

The plan primarily involves private schools.

Under the plan, parents will be required to list the top five schools in which they’d like to invest.

If their child does not attend any of the schools in the group, the parent’s investment will be refunded with a minimal interest rate.

University of Wisconsin professor of educational administration Jacob O. Stampen said that this type of “creative financing” has been used for the past 100 years. He said he thinks a proposal like the Independent 529 Plan would only be successful in privatized school systems.

“Smaller private schools cultivate a certain crop of students, so it is easier to predict a financial outcome in the future,” Stampen said. “It is more risky for public institutions [like the University of Wisconsin] to some extent because it is difficult to know how state finances will pan out.”

He doubts that this type of plan will be adapted to UW and other public universities because the state has control of funding.

“There have been big budget cuts recently because the state’s deficit was much bigger than reported,” Stampen said. He also reported that Wisconsin has a $3 billion dollar-plus deficit that has to be budgeted this year.

“What’s in the air is a tuition increase, but all the other states are in the same boat,” Stampen said. “Right now, we have the second lowest in-state tuition cost (in the Big Ten), but the second highest out-of-state price.”

Although the plan could potentially save money for families, some students are still skeptical.

“I think that [the Independent 529 Plan] is appealing, but I’m afraid that states would squander the money in advance and would have to hike tuition and taxes in the future,” UW sophomore Mac VerStandig said.

Similarly, UW freshman Daniel Nussbaum thinks participation in the program might appear to be to the student’s advantage, but in reality is an excuse for schools to collect greater sums of money.

“All this is doing is giving universities money to invest, while limiting students’ options for schooling,” Nussbaum said.