[icetonez]

I've mentioned I bonds before on this forum, but I think they would be the most perfect investment for you. To start off 0 default and inflation risk, but the main reason it's so germane for you is the fact that you won't have to pay taxes on the interest you earn because it's for education! It only applies to tuition (no room and board or books). Buy or check out from the library Thau's The Bond Book, I believe it's chapter 6 that talks specifically about Ibonds.

Edit: I just checked my own copy because I knew there was some odd stipulation. The catch is that you'd have to transfer the money to a parent/guardian and have them buy the bonds for it to be tax free.