These plans are technically called qualified tuition programs but are more commonly called 529 plans after Section 529 in the Internal Revenue Service code. The two types of 529 plans are prepaid tuition plans and college savings plans.
In a prepaid tuition plan, someone invests a sum that is expected to increase to cover the cost of future tuition. The sum invested is tied to the current tuition rate.
In a college savings plan, people invest funds that, along with the increase in value, can be used to pay college expenses at most accredited schools.
Kentucky offers a college savings plan, KY Saves 529.