There is no such thing as an Education IRA. You can use ROTH IRA money toward college funding but at a limited amount. The tax treatments are the same for both, except with the ROTH you can only take out $10,000 for education expenses vs the 529 where you can use all of it.
If you don't use all of the 529 money for education expenses you can pass the money down to another child or close relative. If you don't want to do that you can save the money for retirement and take the money out taxed as ordinary income.
Anyone can contribute to the 529. Each state has their own plan and some have very good tax benefits or matching funds so if a Grandparent lives in a state with a better plan then you do, have the grandparents take the plan out--you can still contribute to the fund though.
529 money will count toward Financial Aid as will any money taken from a ROTH during college years. 529 money has to be used during college years to get the tax free use but if your child receives a scholarship you can remove 529 money equal to the scholarship amount in the year in which the scholarship was received without tax penalties too.
ROTH limit is $5000/person/year, 529 is something like $200,000 but contributions may be subject to gift taxes so anything over $13,000 might be taxed.
