Financial advisers tend to recommend “529” education-savings plans for college financing. And it makes sense: They allow for tax-deferred growth and tax-free withdrawals for qualified expenses such as tuition, fees, books and equipment.

What’s more, the lifetime contribution limits, which vary by state, are generous—typically ranging from $235,000 to more than $550,000, according to Savingforcollege.com. And new rules have given the plans more flexibility, allowing funds to be used to pay for K-12 tuition and for some leftover funds to be reallocated to a Roth IRA.

Still, some people aren’t enamored of this type of savings tool, especially if they aren’t sure about their child’s higher-education plans or they are hesitant to tie up money they may need for other purposes.

For people who want to consider other college-savings options, here are suggestions from financial advisers:

1. Taxable brokerage accounts

Advisers say taxable brokerage accounts are a good option because of the flexibility they offer. They don’t have contribution limits, and the money doesn’t have to be spent on qualified education expenses, says Hillary Stalker, executive vice president at CapWealth in Franklin, Tenn.

One big disadvantage: A taxable brokerage account is counted as an asset for federal financial-aid purposes. The impact on aid will be larger if the brokerage account is owned by the student, Stalker says.

Another disadvantage is that there is no tax-free growth or tax-free withdrawals.

However, with tax-efficient investing strategies, “you can scale back the taxable interest and the taxable dividends associated with the funds in that account,” says Daniel Yergan, a wealth adviser at Fidato Wealth in Middleburg Heights, Ohio. Such strategies can include investing in growth stock index funds and other funds with low turnover.

2. Roth IRAs

These accounts, which allow funds to grow tax-free if not withdrawn before age 59½, are typically used for retirement. But savvy savers can also tap them for education expenses.

First, contributions to a Roth IRA—but not earnings—can be withdrawn at any time without taxes or a penalty. These funds could be used to supplement savers’ college-financing sources without dipping into investment earnings.

Second, Roth IRAs also allow for a penalty-free withdrawal for education, Stalker says. However, earnings can only be withdrawn tax-free and penalty-free if the account has been open for at least five years and the withdrawal is for a qualified education expense or other eligible purpose.

One downside is that contribution amounts are capped. For 2025, the annual limit is $7,000 a year, or $8,000 for those age 50 and older, so for people who start to save later, this might not be a great option, Stalker says.

There are also income limits for contribution purposes. For 2025, if you are single, you start phasing out at $150,000 and max out at $165,000. Couples who are married and filing jointly begin phasing out at $236,000 and max out at $246,000.

One other point of caution: Anytime you’re using retirement savings for college, you want to make sure you have sufficient other means for retirement, says Isaac Bradley, director of financial planning at Homrich Berg in Atlanta.

3. UGMA or UTMA accounts

Uniform Gifts to Minors Act and Uniform Transfers to Minors Act accounts are types of custodial bank or brokerage accounts opened by parents for a minor beneficiary. These can be useful for education savings as there are no contribution limits and the funds aren’t restricted for education. Also, there are some Kiddie Tax benefits, based on a law that stipulates how investment and unearned income are treated for minors or full-time students under age 24. The law allows limited earnings to be taxed at the child’s tax rate.

However, these types of accounts also have one of the highest impacts on financial aid because funds count as student assets for federal financial-aid purposes.

Another disadvantage is that the child gains control of the asset at the age of majority, which could be 18 or 21, depending on the state, and some parents might not want that, especially if the account has amassed sizable savings, Stalker says.

4. Whole life insurance

Cassandra Kirby, partner at Braun-Bostich & Associates, a wealth-management and financial-planning firm in Canonsburg, Pa., says she has a couple of clients who were able to cover most of their children’s college costs by purchasing whole-life insurance and borrowing from the cash value that had accumulated to pay for college.

Whether parents purchase a policy for themselves or their child for college-funding purposes, whole-life insurance can offer flexibility, Kirby says. Families can use the funds for college, another purpose or leave the funds untouched so heirs receive the full death benefit.

If you use the funds to pay for college, you can surrender from the cash value or borrow against it. Surrendering may result in tax due on any gains in the policy. Borrowing, at a fixed interest rate up to the amount of premium you have already paid in, generally isn’t taxable and doesn’t require a fixed repayment schedule to be established. The deferred interest payments are simply added to the principal of the borrowed amount. Keep in mind, though, that you will diminish the death benefit by not paying back the loan, which could cause tax consequences if the policy doesn’t remain in force.

Parents who opt to go this route should aggressively fund a policy when their children are young so the cash value grows enough to use for college, Kirby says. They should also keep in mind that this type of insurance offers fixed returns, often in the range of 1% to 3.5% annually, which may be lower than what parents may be able to achieve through other investments.

Also, whole-life insurance premiums are often more expensive than simply buying mutual funds or exchange-traded funds in a taxable brokerage account, for example. That is because insurance premiums cover various costs like the cost of the insurance, administrative fees, mortality charges and fund management.

Planning to go this route is also a long-term commitment. “You can’t commit to funding this and have an off year” and decide not to pay the premium, Kirby says. “You’re going to end up short, and the policy could lapse.”