Florida program helps families pay future college costs - NEWS - Brief Article

Matrix: The Magazine for Leaders in Education, Feb, 2001 by Al Branch

A recent report from The College Board (http://www.collegeboard.com) indicates that the rise in college tuition is outpacing inflation nationwide, and rising 4.4 percent at public four-year colleges and 5.2 percent at private four-year colleges. In Florida, however, college tuition increased 104 percent in the last 12 years--far surpassing the national average--and is projected to triple by the time today's newborn goes to college.

The state has therefore instituted the "Florida Prepaid College Program," to help families budget for those rising costs, by purchasing prepaid contracts that lock in the cost of college tomorrow at today's prices. A variety of plans and payment options are available, and the state guarantees that the budgeted amounts will cover future tuition costs, no matter how much it may increase in the future. For example, recent payments for one four-year university tuition plan started at just $56 per month--depending on the age of the child--and end in October of the first year of college. The Florida Prepaid College Board invests the funds received and gains are tax-deferred until the money is used. At that time, earnings are taxable to the student at a rate that is typically much lower than for the person who purchased the plan.

The program can be used at any Florida university or community college, select technical schools, and more than 1,700 out-of-state colleges--perhaps including your institution--and new students can enroll between October and January of any year. For more information call toll-free (800) 552-GRAD, or visit the Florida Prepaid College Web site at http://www.floridaprepaidcollege.com.

--OED