Even as college costs keep rising and recession-scarred families scramble for aid, several cash-strapped states have abandoned or scaled down one of the most popular college-savings options: prepaid tuition credits.

The next casualty may be Washington state, where legislators announced last week that the state’s prepaid tuition 529 plan, called Guaranteed Education Tuition, may be in need of an overhaul. That comes on the heels of Tennessee’s decision in November to shut down its prepaid plan, making it the eighth state to do so in the last few years. And in Alabama, legislators are facing a class-action suit brought by parents who say that state’s plan is underfunded by $269 million, assuming tuition keeps climbing at its current pace.

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