By Florida Press Association Press Release
Families with Plans Have Peace of Mind during Market Fluctuations
There aren’t many things in life that are guaranteed. But beginning October 20, parents can purchase a Florida Prepaid College Plan that is financially guaranteed by the state of Florida. With a safe and secure way to save for a child’s higher education, families don’t have to worry about the current volatility of the stock market and they cannot lose their money when they purchase a Florida Prepaid College Plan.
The Florida Prepaid College Board begins its 2008-2009 annual enrollment period on Monday, October 20. The new Florida Prepaid College Plan prices, posted at www.myfloridaprepaid.com, are available from October 20 until the sign-up deadline of January 31, 2009. The price of a four-year university tuition plan starts at around $3 a day for a newborn and the two-year community college tuition plan begins at around $1 a day.
"In current times of economic uncertainty and rising prices, the peace of mind for a family with a Florida Prepaid College Plan is more valuable than ever. You don’t have to worry about the stock market. Your Florida Prepaid College Plan is financially guaranteed by the State of Florida. And once your family has purchased a Prepaid College Plan, your payments are fixed and never increase," said Chairman Ted Hoepner of the Florida Prepaid College Board.
Since 1988, families have purchased nearly 1.3 million Florida Prepaid College Plans, making it the largest and most successful prepaid plan in the nation. The Florida Prepaid College Plan allows families to prepay tuition, local fees, the tuition differential fee and dormitory housing at today’s plan prices.
A freshman who entered a Florida public university this fall, whose family bought the university tuition prepaid plan when that student was a baby, paid $4,048 for four years of tuition that costs $12,017 today. That is a savings of $8,000.
When a child is ready for college, the Florida Prepaid College Plan covers the actual cost at any Florida public university or community college. If the student decides to attend a private college, out-of-state college or technical school, the value of the plan may be transferred to any eligible institution. To qualify for a plan, the child or child’s parent/guardian must be a Florida resident. Parents, grandparents, friends and even businesses can purchase a plan.
Families can sign up online for the Florida Prepaid College Plan at www.myfloridaprepaid.com or call 1-800-552-GRAD (4723) to request an Enrollment Kit in English or Spanish and speak with a customer service representative.
Financially guaranteed by the State of Florida, pursuant to Sections 1009.98 (7) and (8), Florida Statutes, stating "the state shall agree to meet the obligations of the board to qualified beneficiaries if monies in the fund fail to offset the obligations of the board. The Legislature shall appropriate to the Florida Prepaid College Trust Fund the amount necessary to meet the obligations of the board to qualified beneficiaries. In the event the state determines the prepaid program to be financially infeasible, the state may discontinue the program. Any qualified beneficiary who has been accepted by and is enrolled or is within 5 years of enrollment in an eligible independent college or university or state postsecondary institution shall be entitled to exercise the complete benefits for which he or she has contracted. All other contract holders shall receive a refund of the amount paid, and an additional amount in the nature of interest at a rate that corresponds, at a minimum, to the prevailing interest rates of savings accounts provided by banks and savings and loan associations."