In my humble opinion, saving for ANYTHING is always smart. It doesn't matter if it's college, a new set of pots and pans, or a root canal...saving is the way to go.

Student Loans are helpful but they can be like an albatross to a fresh graduate who is ready with a new job and wants to possibly move out, buy a car, get furniture, hey, maybe even marry. I say, save for their tuition, and if they get a scholarship, then use that money for a trust fund, or a nice vacation, or to pay off my credit card...what?