A drawback of both the Education I.R.A. and the state-sponsored plans is that the money belongs to the child, not the parents.

The state-sponsored plans are so new that it is not yet clear whether they will be counted in the formula that reduces scholarships based on a student's assets, although many financial planners predict that they will.

Within that number, 22.2 percent were covered by a spouse's plan; 3.1 percent relied on Medicaid or a state-sponsored plan; and 2.3 percent received insurance through the military.

IN a short time, the state-sponsored 529 savings plan has become one of the nation's most popular ways to invest for college.

Created in 1996, 529 plans allow after-tax income to be invested in state-sponsored plans and to grow free of federal and state taxes.

One option: state-sponsored 529 plans, in which all the money invested is designated for higher education.

Local governments and school districts involved in the state-sponsored plan, most of them in downstate areas, were not notified about the premium increase until November.

PAGE A6 High Price of Gold Medals Some former East German athletes are seeking redress for the damage caused by a state-sponsored plan to use steroids to build Olympic champions.

Those who are currently insured but want to switch to the state-sponsored plan have to be uninsured for at least four months before applying.

Guaranteed or not, are the state-sponsored plans a smart way to save?