Help Pay for College With Credit Card Purchases

Very soon, you may be able to put money aside to help finance your children's education when you use a credit card.

A new service offered by UPromise hopes to capture market attention by placing rebates on consumer products into a 529 plan, a state-sponsored savings plan in which any monies are tax-deferred until withdrawal. At that time the money is taxed to the child, and presumably a lower rate than that of the parents.

Rebates could range from one percent for general credit card use, to as much a 10 percent for a restaurant meal, for example.

The service plans its debut this March. A user can even have friends and family contribute their rebates to a certain account. The company has some strong backers behind it, including former senator and presidential candidate Bill Bradley, who says, "I think UPromise could change the world."