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Mar-16-2009Options for those with PACT plan(topic overview)
CONTENTS:
- They didn'''t start the problem, but Troy University officials are working hard to at least make a dent. (More...)
- Officials in Colorado aren't worried about making future tuition payments even though it lost $2 million from 2007 to 2008, said spokeswoman Jennifer Robinson. (More...)
- '''While Alabama is not well poised to assume any new financial obligations, I hope the PACT board and the state'''s leaders will remember that PACT has been advertised for years as a reward for prudently investing in a child'''s future,''' Davis said. (More...)
- PACT has 50,000 policyholders. (More...)
- Tennessee's plan ended last year with assets falling $12 million below the present value of future benefits. (More...)
- Neither has happened yet. (More...)
- The program was created in response to the Section 529 of the Internal Revenue Code of 1986, which authorizes states to create college savings programs. (More...)
- '''We went into it with the hope that we would get four years of tuition paid for,''' Orr said. (More...)
- The Retirement Systems of Alabama, the pension fund for teachers and state employees, has lost 23 percent in that same time frame. (More...)
- Unless the market shifts quickly or the plan receives an infusion of cash, it would run out of money after nine more years of paying full tuition. (More...)
- To date, no plan has failed and no student has been unable to attend college due to plan related problems. (More...)
- Space shuttle Discovery is rocketing toward the international space station after more than a month of delays. (More...)
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They didn'''t start the problem, but Troy University officials are working hard to at least make a dent. After Alabama'''s Prepaid Affordable College Tuition (PACT) program announced it might not be able to guarantee the full tuition costs that those paying into it have expected, Troy'''s Board of Trustees agreed Wednesday to waive any tuition increases for just those students during the next three years. This comes after PACT has lost 48 percent of values since 2007. '''There are parents, grandparents, relatives all over the state who purchased a contract with the understanding tuition and fees would be guaranteed when their loved ones were ready for college and that tuition and fees would be taken care of by the PACT program,''' said Troy University Chancellor Jack Hawkins, Jr. '''As educators in Alabama, we need to pursue a solution based upon that concern for students and those who subscribed to the program.''' For the next three years, students in PACT at Troy University will pay tuition based on this year'''s rates, despite any increases the school may incur. Hawkins said he anticipates this to come at a cost greater than $2.5 million to Troy University. In time when proration is taking its toll on schools across the state, Hawkins said this will just become an extra burden the school will carry for the next few years. [1] Institutions of higher learning have to look at things in terms of black and red, and with grant funds drying up, it is becoming tougher to educate students. It'''s good to see, however, that some state schools are biting the bullet to make life more comfortable for some of their students. Alabama State University and Troy University have announced in recent days that they will begin a three-year waiver of tuition increases for current and future students in the Alabama Prepaid Affordable College Tuition Plan (PACT).[2]
State Treasurer Kay Ivey prompted a stir among parents who have bought into the Prepaid Affordable College Tuition program. PACT began in 1990 as a way for families to pay today's rates for their child's future college tuition. All's well and good, until Ivey sent a letter urging the 48,000 participants not to pull their money out while the board "considers options to maintain the viability" of the program. These days, urging folks "not to worry" is reason enough to worry. People already witnessing shrinkage of their 401(k) are in no mood to hear that their PACT account could be eaten as well. This ain't a good time to be a treasurer, especially one who is thinking about running for governor. From time to time, I've had people suggest I use this forum to show a drawing as it develops from a rough to a final. Yesterday one of our reporters, Booger, saw the rough sketch for today's entry and repeated this suggestion. Since I've never drawn Kay Ivey before, I thought this might be a good opportunity to take you on this maiden voyage with me.[3] Recently, letters from State Treasurer Kay Ivey went to 48,000 families who have participated in the Alabama Prepaid Affordable College Tuition (PACT) program, saying for the first time that the fund is in some difficulty. It also brought home something that came as a rude surprise to parents: there is no guarantee for this program.[4]
If you have enrolled your child in Alabama'''s prepaid college tuition plan, there may be cause for some concern. According to State Treasurer Kay Ivey, the Wallace-Folsom Prepaid Affordable College Tuition Plan has lost 48 percent of its assets going from $899 million to $463 million.[5] Whether that will remain true in future years isn't clear. Alabama's Prepaid Affordable College Tuition Plan has seen the value of its assets drop from $899 million in September 2007 to $463 million at the end of January.[6]
In the last five years, tuition increases have doubled the rise in the rate of inflation, and more recently the market has tanked. To cope, some states have frozen enrollment, redesigned their programs, or charged parents more. "Just like people are seeing their 401(k)s and their investments getting hit, that's what is happening to people's college investment plans," said Steve Curry, assistant to Tennessee's treasurer. That state's plan ended last year with assets falling $12 million below the present value of future benefits. He said the state can make up the difference by the stock market turning around or by transferring money from the state budget. Neither of those has happened yet.[6] MONTGOMERY, Ala. (AP) — State-run trust funds for parents who want to pay off college tuition before their children enroll are running short on cash, and program officials worry they won't be able to pay for students who are counting on the money. The rising cost of college and plunging stock market have combined to create a disparity between what some of the 18 states' prepaid tuition plans have on the books and what they're supposed to pay.[6] State-run trust funds for pre-paid college tuition are running short of cash because of the rising cost of college and the declining stock market. The programs became popular as a way for parents to pay a fixed amount of tuition at a lower price than if they had waited until the child actually enrolled.[7]
Parents contribute funds to PACT to cover the future cost of instate tuition at any public two-year college or four-year university. The board of directors invests these funds into the stock market, while the return offsets tuition increases.[8] The state invests the money and uses the earnings to provide four years of tuition and fees at a state public university. At least, that is how it is supposed to work. PACT investments have lost 46 percent of their value in just a year and a half, with a 20 percent drop during the recent stock market tumble. The trust fund has almost all of its assets in stocks, and was worth nearly $900 million in 2007. Now the fund has assets around $484 million, only half of what it needs to meet all its obligations.[4] Several in the crowd of about 300 also criticized the seven board members who didn't attend the hearing. Four members of the 10-member board are in attendance, and two others sent representatives on their behalf. "This is too big and too important for all of the board members not to be here," Birmingham's Dale Goode, who has three of the contracts, said to applause. The trust fund backing the prepaid tuition program has lost about 46 percent of its value in a year and a half, and its assets now are sufficient to meet only about half its obligations. State Treasurer Kay Ivey told those attending today's public hearing in Montgomery that the state is committed to working toward a solution.[9] The fund, with assets valued at $484 million in December, is insufficient to pay tuition for all of the program's participants. Parents who had counted on the tuition program to see their children through college objected Wednesday to the format of today's hearing, saying they had hoped to ask questions and get answers. Vestavia Hills' April Guin, who bought three PACT contracts for her children in the early 1990s, said parents want to question the board about language in contracts guaranteeing that tuition would be paid. "It borders on deceit for the state to do something like this," she said Wednesday.[10] Out of the $8.8 billion in assets, $8.3 billion is needed for contract liabilities, leaving a reserve of only $468 million that will be needed to pay the rising cost of tuition at state schools. Lawmakers looking to loot Prepaid say it can be done without jeopardizing the stability of the program or its ability to make good on tuition coverage for contract holders. Prepaid is financially guaranteed by Florida, they argue, so it should have the right to swipe out cash from it like a giant ATM.[11]
MONTGOMERY, Ala. Angry and disappointed participants in the state's prepaid college tuition plan, some with signed contracts in hand, pleaded with the board that manages the failing plan Thursday to come up with a favorable resolution. Created in 1989, the Wallace-Folsom Prepaid Affordable College Tuition Plan lets people pay a fixed amount when a child is young in anticipation of getting tuition and fees paid at an in-state public university when they finish high school.[12] The managing board of the state's Prepaid Affordable College Tuition Plan say rising school costs and the economic downturn mean there's not enough money to pay obligations. Participants pay a fixed amount when a child is young in anticipation of getting tuition and fees paid at an in-state public university when they finish high school.[13]
Alabama state government needs to get out of the prepaid tuition business, but only after meeting its moral ' and probably legal ' responsibility to thousands of would-be college students. Since the Wallace-Folsom Prepaid Affordable College Tuition Plan was created in 1989, it has left the strong impression with parents of Alabama children that if they invested in the plan, their children's tuition at an Alabama college would be covered down the road. Now the money isn't there for PACT to meet its obligations to the more than 48,000 participants.[14]
Statements by PACT officials that there were no guarantees that tuition would be covered may very well not hold up in court. While there is fine print in the contracts to the contrary, the program definitely left the impression ' especially in its first five or six years ' that the state would stand behind the program to ensure students would have their college tuition covered. Even the program's name implies a guarantee, although parents are now learning that there really isn't any "prepaid tuition" in this plan. If a solution is not worked out, there will be lawsuits ' lots of them.[14] The program was started in 1990 when the Legislature passed the Wallace-Folsom Prepaid Affordable College Tuition Plan. Four states have plans that are fully guaranteed by their state, and most of the other states authorize state lawmakers to cover contracts in the event of a loss. Alabama is one of three states that offers no government backing at all, because our state constitution prevents taking on such liability.[4] University President William Harris says ASU will begin a 3-year waiver of tuition increases for current and future students in the Alabama Prepaid Affordable College Tuition Plan. Harris said Friday ASU is having its own financial challenges, but the university wants to help students in the program.[15] The Troy board agreed today to a three-year waiver of tuition increases to current and future students in Alabama's Prepaid Affordable College Tuition Plan.[16]
Montgomery - Troy University on Wednesday became the first school to address the tuition financial crisis by freezing tuition for three years for students in the Prepaid Affordable College Tuition plan.[17]
The Prepaid Affordable College Tuition Plan was created in 1989 to allow parents to pay a set amount for tuition down the road. State Treasurer Ivey has encouraged parents not to withdraw their money until after a board meeting March 24.[18] Board members will not answer questions or make comments, said Brenda Emfinger, director of the program. State Treasurer Kay Ivey, whose office oversees the Prepaid Affordable College Tuition program, recently sent participants a letter warning them that it is in trouble.[10]
The PACT, or Prepaid Affordable College Tuition, is a program with the state of Alabama that allows families to prepay for tuition for colleges and universities.[19] Alabama was the third state in the nation to implement a prepaid college tuition program when the Prepaid Affordable College Tuition (PACT).[20]
State's prepaid college tuition program has lost 46 percent Alabama Viewpoint Bob Martin Section 529 of the Internal Revenue Code authorizes states to create two types of college savings programs - prepaid tuition plans and college savings plans.[20] McGrath said the state's Guaranteed Savings Plan assets dropped nearly 23 percent last year. If a plunging stock market wasn't damaging enough, college tuition hikes doubled the rise in the rate of inflation, causing all of the nation's 18 state-run tuition savings programs to reconsider how they're doing business.[21] The state's colleges have been raising tuition at rates far higher than the rate of inflation for years. In order to keep up with those higher rates, PACT was shooting for a rate of return on its investments of about 9 percent annually. To meet that overly ambitious goal, PACT was heavily into the stock market and its investments were nowhere near as diversified as they should have been.[14]
Options include adjusting the amount of tuition the program pays to colleges, getting money from the state or federal governments, or liquidating the program and returning money to parents. Speakers made it clear they do not want their money back, especially since in many cases the initial investment would hardly cover costs for one school semester let alone all four years. Louise Grant of Montgomery finished paying a PACT for her grandson Jelin in 1998. "All he has heard is get your lessons, do well and your college will be waiting for you," she said. "How can I go back and tell him you can't go to college because the program that I paid for is out of funds? Where's my money? I don't want it back I want his college education."[12] Among the other states with fewer assets than anticipated liabilities are Tennessee, South Carolina, West Virginia and Washington. Seven of the 18 — Florida, Maryland, Massachusetts, Mississippi, Texas, Virginia and Washington — back their plans if money runs short, according to college savings organizations and state officials. The state-run programs became popular 20 years ago as a way for parents to pay a fixed amount when a child was young for tuition at a lower price than what they'd pay if they waited until the child enrolled.[6]
More controversy tonight surrounding the state's troubled PACT program! The college tuition fund that has lost nearly half of it's assets in the last 18 months is under even more scrutiny tonight and is causing parents and lawmakers to demand public transparency.[22] The deal with PACT was buy now and go to school later no matter how much tuition increased. This is exactly how the program was marketed. It is in no way the fault of the 48,000 participants that purchased this plan that the plan is going to be short of money. I believe that since this fund is administered by the State Treasury Department the State of Alabama needs to step up to the plate and work something out with these universities to ensure that our children get to attend college.[16] PACT was not only for the wealthy. PACT was purchased by everyday middle class people that were planning ahead for their children's future. I am sure that many PACT families sacrificed to make payments into this program. If families chose not to participate in PACT due to the risk then that was their choice and hopefully they invested money elsewhere for their children's education. The fact of the matter is 48,0000 families did invest in PACT believing that it would cover their children's education when the time came for them to enter college. I honestly don't believe that very many of the 48, 000 families that purchased PACT foresaw the risk as this program was touted as a State College Savings Plan. I commend Chancellor Hawkins for taking this step forward to work towards honoring the PACT plan that so many families purchased.[16]
In Brevard, 35,603 Prepaid plans are on the books, covering expenses for 24,830 students. That very success has made Prepaid look like a plum ripe for the picking by state lawmakers. That's right. Florida legislators want to find out if they can raid some of Prepaid's $8.8 billion in assets to help fill a $5.5 billion budget hole for next year. That's an incredibly shortsighted idea and shows lawmakers are grabbing at straws rather than get down to tough decisions on how to eliminate inefficiencies, make prudent cuts and find new revenue opportunities to create a more stable economic future for the state. Florida Prepaid founder Stanley Tate says lawmakers should keep their hands off the programs funds, which don't belong to the state, and he's right. They belong to families who prudently budgeted their earnings to invest in their children's future.[11] What's more, Gov. Charlie Crist wants to take almost $500 million more from trust funds next year. With all those pots waiting to be refilled, there's no certainty anything borrowed from Prepaid would be paid back. Meaning using the program as a temporary cash cow could spell its demise. Families relying on a Prepaid contract to help future college students earn a diploma should contact legislators and tell them hands off our college piggy bank.[11]
BALTIMORE ( Map, News ) - Officials say Maryland's prepaid tuition plan's projected deficit grew to $80 million last year due to investment losses, but they stress the trust is still sound. College Savings Plans of Maryland executive director Joan Marshall says they have funds to pay future benefits for more than 17 years.[23] Disquieting news from Maryland is showing some problems with that state's prepaid college tuition program, to the tune of a $80 million shortfall in funding. Investment losses in 2008 caused the Maryland Prepaid College Trust to drop in value, raising concern among some parents that the money won't be there when they need it.[24]
Parents and grandparents who bought into the state's troubled prepaid college tuition plan will get an opportunity today to address the program's board of trustees.[10] Thousands of Brevard County families rely on the Florida Prepaid College Board program to help keep college costs affordable ' and its financial stability shouldn't be put at risk. Started in 1988, the Prepaid program allows parents to lock in present-day tuition rates at state colleges for their children, often through small monthly payments over as many as 18 years.[11] The plan could also reduce payments to families. "I thought the money was in the bank," said Montgomery attorney Larry Menefee, who was caught by surprise when he received a letter telling him tuition for his triplet sons wasn't guaranteed. He was counting on the money to help cover costs for the three, who are starting college in the fall. He has saved literature since his children entered the program, and letters in his file promise it will "will guarantee payment," even though administrators now say the state law setting up the program never guaranteed full coverage of tuition.[6] "I thought the money was in the bank," said Alabama attorney Larry Menefee, who was surprised when he received a letter saying tuition for his triplet sons isn't guaranteed just as they prepare to start college this fall. Menefee said he still has the enrollment paperwork promising the plan "will guarantee payment," even though administrators now say the state law establishing the program never guaranteed full tuition coverage. Only seven of 18 states back their plans if money runs short, including Florida, Maryland, Massachusetts, Mississippi, Texas, Virginia and Washington, according to state officials and college savings organizations. The Associated Press contributed to this report.[21]
Associated Press - March 13, 2009 6:34 PM ET MONTGOMERY, Ala. (AP) - Alabama State University is offering help to the state's financially ailing prepaid college tuition plan[15] MONTGOMERY, Ala. (AP) -- More than 200 participants in the state's prepaid college tuition plan attended a public hearing about the troubled program.[13] MONTGOMERY, Ala. (AP) Officials of Alabama's prepaid college tuition plan have scheduled a public hearing Thursday in Montgomery to hear from participants in the program.[25]
Bernard Troncale/Birmingham News A modest crowd attends the opening of a today hearing on Alabama's Prepaid Affordable College Tuition program at Frazer United Methodist Church in Montgomery.[9] Amid concerns over the fiscal health of the Prepaid Affordable College Tuition Programs, the board of directors will hold a public hearing Thursday from 1:30 p.m. to 4 p.m. at Frazer United Methodist Church in Montgomery.[8]
You've been socking away college tuition money for your child for fifteen years, understanding that the funds you've been setting aside will be enough to cover all four years of your child's higher education. Thanks to a prepaid college tuition program that you've been a part of since her birth, she'll be able to afford tuition at the University of Maryland, joining scores of her fellow classmates in rooting for the Terps.[24] I'm the owner of 2 plans. One child in his 3rd yr of college and one in her 3rd yr of HS. I'm willing to consider other options so that my children get the education that I paid for in 1989 and 1992. I'm willing to send my younger one to a Jr College for 4 semesters to help save the PACT program some money as long as they agree to pay for it and then pay for the rest of her education @ a 4-Yr College. I sacrificed when they were in diapers so that I wouldn't have to accumulate debt in my later years to give them a college education.[9] Inappropriate? Alert us. I would like to tell you what happened with my daughters PACT's accounts. 20 years ago at the birth of the girls my father gave my girls cows to pay for their PACT program. Being each time the cows had calves they would be sold to pay for their college education (PACT). The oldest daughter user her for several semesters then got a really good job and decided to stop college for a while. Yesterday she called about her account. Mary told her she had no account, she said that she had used it in 2006 and wanted to get her money out because the 10 years would be up this year. After checking the account # Mary had told her that it had been transfer to another person (her Step- sister she had never met). Come to find out her dad was the owner of the account, which I signed her up for the account and put out his name on the account not thinking 22 years later we would be divorced. I called the lady at the PACT program and they told me that there was nothing they could do he was the owner of the account. Now with the second daughter has to get him to sign a piece of paper stating that she wants to be the owner of her account if he decide not to sign it she is out of her money also. Just want to make sure this does not happen to anyone else. These kids grow up thinking that they have college waiting on them not only is it going broke they can have the owner of the account also take it away. My father has passed away; he did this so his granddaughters would be able to have a college education. By the way they have not seen their father in 15 years.[10]
We were looking ahead, in case we did not have the money to send our children to college when the time came. The PACT program to us represented a guarantee that no matter what happened our children would have this program to pay for college when the time came for them to go. I believe that these universities should work with PACT to honor these contracts.[16]
Davis suggested a couple possibilities for the program'''s future. Allowing parents to opt out of PACT in exchange for a one-time tax credit against the full or substantial value of their PACT contribution. Davis also said students who are enrolled in college should receive a partial guarantee on their PACT contract. '''It would be a cruel blow to parents and students to allow PACT to fail at a time when families are struggling more than ever to meet the demands of rising tuition.'''[8]
Waiving tuition and fees will save students and parents about $2.5 million. The University of Alabama and Auburn University both have said they would not change tuition prices for PACT students after being asked to by state Treasurer Kay Ivey, whose office administers PACT. Hawkins has been mentioned as a gubernatorial possibility in 2010, and if so, he joins a growing list of candidates to address the PACT crisis that the public will have an opportunity to sound off on during a meeting here today. State Rep. Robert Bentley, R-Tuscaloosa, a potential gubernatorial candidate, said the state has an obligation to make good what PACT purchasers thought they were buying when they entered the pre-paid tuition plan.[17] '''In our view of what has happened, we don'''t have a choice but to consider that,''' Hawkins said. Though tuition at Troy University remains now about 80 percent of the state average or around $5,400, students still could be looking at jumps in coming years, and those not on the PACT program will be paying at those increased rates.[1] Troy University, where Hawkins Hall was dedicated in January, above, announced Wednesday it will waive tuition increases for students enrolled in the PACT program for three years, beginning in the fall.[10]
Today, Troy University, which currently has 600 PACT students, announces a three-year waiver of tuition increases to students in the PACT program.[22]
There was a defacto expectation that because the state was behind it, that it was "safe". I commend the Troy Board of Trustees for their plan to honor the PACT. The contract that I have states the PACT program "guarantees" payment of tuition. this was changed on later contracts. I guess they can do that.[1] Ramsey - you got yours - you got in early and were able to cash out - but the others who got in later will be soaked - - sounds a little like a Ponzi scheme. Troy State will waive increases only for those who had PACT contracts but will make up the difference by even more increases for those who did not and by increasing all those lovely fees for everyone. Then they will go to the legislature and whine for more money to be transferred from public eduction to colleges claiming they need it to cover their expenses for waiving tuition increases but without mentioning a $300,000 garden at the Furher's mansion or the four-story parking deck for the football department.[1]
The trust fund is an instrumentality of the state. It was designed to assist payment of tuition costs by allowing participants to purchase in advance prepaid tuition contracts, which obligated the trust fund to pay tuition in full if the child attended a state college.[26] MONTGOMERY, Ala. (AP) - The rising cost of college and plunging stock market have combined to create a disparity when it comes to prepaid tuition in some states.[27] According to an article which appeared in the Baltimore Sun ( Prepaid tuition plan deficit hits $80 million ; March 12, 2009) plan assets at year's end totaled $429 million, down from $541 million six months earlier. At that earlier date the plan had a surplus of just under $60 million with losses coming when the stock market collapsed last fall.[24] To get the money, the program invests most of it in the stock market. Up until this year, the plan has worked wonderfully well, but the downturn in the economy has caused the program to take a significant hit. Another major problem is that our major universities are increasing tuition almost every year. Ivey asked university leaders to freeze tuition this year, but that move was rejected. Because the program has taken this major blow, Ivey sent out a letter to all of the program'''s participants informing them of what is going on, and her office has been inundated with calls about the financial problems.[5] State Treasurer Kay Ivey sent out almost 49,000 letters last week informing participants the program had suffered significant losses in the stock market at a time when the cost of education is continually rising.[18]
McGrath said state Treasurer Rob McCord plans a long look at the program's viability. "He's very interested in the program and taking a fresh look at it and bringing all the parties to see what can be done to enhance the program's long-term viability," McGrath said. Such state-run tuition savings programs, known as "529 plans," became popular 20 years ago for parents who liked the idea of paying lower, fixed amounts for tuition when children are young rather than paying higher tuition when they enroll. That was when states administering the plans expected investment earnings to continue exceeding tuition costs.[21] The states running the programs, which are one type of the investment device known as a "529 plan," expected the investments' earnings would exceed the cost of tuition.[6]
The worst case is in Alabama, where the sour economy has sliced off nearly half of the fund's assets, and state officials are telling parents the full cost of college isn't a sure thing. The board overseeing the plan there is scrambling after assets lost 48 percent of their value since September 2007, and they currently have only about half of what they need to pay what families are expecting.[6] "The first enrollment period for the new Texas Tuition Promise Fund has ended, and it was a tremendous success," Combs said. "Texas families welcomed the opportunity to take some of the uncertainty out of college planning by locking in their children's college tuition and required fees at today's prices and prepaying those expenses before the children are ready for college." Parents will be able to prepay their children's tuition at Texas public colleges and universities based on the 2009-2010 academic year costs.[28] The new open enrollment period for the prepaid tuition program begins Sept. 1, 2009. "Even in these challenging economic times, the Texas Tuition Promise Fund gives families flexible, affordable options to fit college savings into their budgets -- whether it is for a four-year degree or for technical training at a community college, which is all that many well-paying, in-demand jobs require," Combs said.[28] Programs have also stopped allowing new families in South Carolina, Ohio, Kentucky and Colorado. Texas stopped taking new students in its first prepaid college plan in 2003 due to a sudden rise in tuition, but later started a new one.[6] Plans covering college fees, dormitory housing and costly new tuition differential expenses charged at many universities can also be bought at locked-in rates ' a great savings for families who plan ahead. It's no wonder Prepaid has been extremely successful ' with more than 1.3 million contracts sold to help an estimated one in every 10 Florida children get a foot in the door to higher education.[11] Texas Comptroller Susan Combs' office has sold more than $239 million worth of prepaid college tuition contracts through the Texas Tuition Promise Fund.[28] Today, the Birmingham News reports five pages are missing from a financial statement on the Prepaid Affordable College Tuition or PACT website. pages which reveal a 22 million dollar mis-statement in an audit. "Given the continued uncertainty concerning the status of the fund and the emerging questions regarding its management, a new independent audit is a clear and necessary step[22]
'''You can get your money back, but that means it'''s just been sitting there.''' Orr said he vividly remembers buying the PACT plan for his two children. Now he wonders whether or not his kids''' college tuition will actually be paid in full after participating in the program for more than a decade.[18] PACT is a nearly 20-year-old state-sponsored investment plan in which parents and grandparents can buy future college tuition at today's prices.[17] The main issue is that the state cannot guarantee that the money will be there. Although it isn'''t necessarily promoted this way, the prepaid college tuition plan is an investment, and there is risk involved.[5]
"Is there enough money to pay all the obligations? No," Ivey said. The plan will meet later this month to decide what action to take. West Virginia's plan stopped letting people enroll their children more than four years ago. Its investments have lost $23 million since July 1, or nearly 27 percent of their value, said Greg Stone, spokesman for the state treasurer's office. "We do have quite some time to make this up.[6] This is exactly what you people deserve for electing people of the caliber of Bob Riley and Kay Ivey. They don't care about you. Bob Riley would rather give his buddy Twinkle a cupcake $80k a year job (while there's a state hiring freeze) than use that money to help education. Notice we didn't have these problems with PACT when Siegelman and Baxley were in these offices.[12]
People say education is expensive but I'''m telling people that not having one is even more expensive.''' Orr invested a total of $14,000 into the PACT plan about 15 years ago for his daughter and son. His daughter Kaitlyn is currently a freshman at the University of Alabama, while his son Andrew just entered Pelham High School this year.[18] PACT officials requested the waiver of all state schools, said Gregory Fitch, director of the Alabama Commission on Higher Education and a member of the PACT board. Troy was the first university to waive tuition increases, he said.[10] Troy University and Alabama State University have commited not to raise tuition for PACT participants at least for three years.[14]
TROY -- Troy University is offering some relief to Alabama's financially troubled prepaid college tuition program.[16] Alabama is one of more than a dozen states to offer prepaid contracts for college tuition.[4]
If your state's prepaid tuition plan is experiencing a shortfall, more than likely there are processes in place to keep everyone covered in the event of a financial catastrophe. With hundreds of families joining these types of plans during the open enrollment periods, contributions will continue to cover educational costs for thousands of students for many years to come.[24] Pennsylvania's prepaid tuition savings plan has enough money to pay investors for the next eight years, but without an economic upswing, a redesign is likely in its future.[21]
Mark Kantrowitz, publisher of the Web site FindAid.org, said many state plans are being hit from two sides. Their investments are dropping in value and public universities are raising tuition by higher-than-normal amounts because the economic downturn is shrinking state funding for higher education. Despite the problems, no plan has failed to pay tuition this school year, he said.[6] The Maryland plan has about 28,000 enrollees, with about 6,000 now eligible for benefits, Marshall said. Half of those taking benefits go to Maryland public colleges, while the rest go to private or out-of-state schools. Prepaid plans nationally have suffered investment losses since the stock market started its slide.[29] The stock market's plummet was devastating. Back in the early 1990's, this editorial page was critical of PACT leaders for overselling the merits of the plan and questioned whether the state really should compete with the private sector for college investments.[14] The PACT board recently told 48,000 families who bought PACT plans that program investments lost 46 percent in value because of the down stock market. "Although we can't propose a long-term answer to this problem, we can offer short-term relief."[17]
Stock market losses have cut into the program'''s funds ''' 45 percent since 2007. ASU is facing its own financial challenges, according to university President William Harris, but the school wants to help students achieve their goals of attaining a college degree.[2] The value of the trust fund backing the program has declined by about 46 percent in a year and a half, including 20 percent during the recent stock market collapse.[10]
"Do what you say you're going to do and make it work. That's it." The program raises most of its funds by investing payments in the stock market and managers say it's been hard hit by the economic downturn, rising tuition costs and a record number of children enrolled.[12] Troy Chancellor Jack Hawkins says the action was in response to a request from the program's board. The program has seen its assets cut nearly in half due to the downturn in the stock market, and it is grappling with how to keep paying tuition increases.[16] Troy University announced the same 3-year waiver earlier in the week. The tuition plan has lost nearly half of its assets since September 2007 due to falling stock prices.[15]
Officials in Colorado aren't worried about making future tuition payments even though it lost $2 million from 2007 to 2008, said spokeswoman Jennifer Robinson. In Washington, where Guaranteed Education Tuition officials said they expect to raise prices for parents, University of Washington President Mark Emmert recently told a legislative committee that the program is worth saving. "The challenge, of course, is that you can't set a policy that will keep the GET program solvent by making universities and colleges insolvent," he said. [6] There is nothing wrong with that as we all take risks everyday. That the risk has cost them is no reason to step in and save the day. If the state does that it will be asking those parents who did their own saving and investing to cover their own losses as well as the losses of the parents in PACT. This is not sound judgment. I invested $20,000 in this program when I was assured that my child would be able to go to college no matter what. i will be sick if I lose it.[4] "We really want to look into PACT and see as a Legislature if we can help the treasurer and people who bought tuitions," said Bentley. He said the Legislature probably doesn't have funds to prop up the PACT program but he believes there's an obligation to cover tuition as described in PACT literature. Bentley said he wants to ask the state's largest universities to honor tuition that parents thought they were purchasing. "Our concern is for the parents who bought these instruments with the implied promise they were guaranteed," Bentley said.[17] McGrath said program administrators routinely look at tuition costs every September to determine whether to adjust the amount parents pay into the state program to insure they get full tuition out when their children are ready to enroll.[21] Inappropriate? Alert us. PACT participants should get a lower tuition because we bought this program with the promise that it would pay for our children"s tuition when the time came for them to attend college.[16] PACT pays tuition for about 2,600 students at the University of Alabama. She said the worst thing participants could do at this point is pull their money out of the program.[8] Invested families, though, aren't thinking of the situation in terms of government policy. Leah Beth Downs, a junior at the University of North Alabama, said she and her sister have been in Alabama's plan since they were youngsters in Athens, Ala., and they are counting on it to keep paying their full tuition each semester. "My mom's an educator, so it's not like there is a lot of money. If it didn't pay, we'd have to take out loans," she said.[6]
'''Is there enough money to pay all the obligations? No,''' Ivey said at a news conference last week. While this significant drop is troublesome, Ivey said they have still been able to pay the tuition of the current 12,000 students in school under the plan.[5] In the last five years, tuition increases have doubled the rise in the rate of inflation, and more recently the market has tanked. Texas stopped taking new students in its first prepaid college plan in 2003 due to a sudden rise in tuition -- but later started a new one.[27] Not all of the students in the PACT plan will go to college next year, or the year after. At least the state's commitment could be spaced out, and an economic turnaround would help down the road.[14] "There is a moral obligation." At an impromptu news conference, Elizabeth Norton, of Montgomery, said she attended college on PACT and has purchased a PACT plan for her 6-year-old. "I invested money for my children to go to college," she said.[17] Life is full of risks. If a parent had saved and invested their own money for their children's education they too would be in a tough situation because their investments lost money as well. Why should people who chose to invest in the PACT plan be insulated from the dangers of investment just because they let the government manage their money? Parents in the PACT plan assumed a risk when they put their money in a non-guaranteed plan.[4]
Parents should be aware of the plan's actuarial deficit but should also understand that "they are just projections based on assumptions of increasing tuition and investment performance," says Joseph Hurley, founder of Savingforcollege.com. "No one has lost money in any of these plans," adds Jackie Williams, a spokeswoman for the College Savings Plans Network.[29] "We have sufficient funds to pay future benefits for more than 17 years," says Joan Marshall, executive director of the College Savings Plans of Maryland. During the last two quarters of 2008, the Maryland plan lost 9.3 percent and 15.9 percent, respectively, on its investments.[29]
BOCA RATON, FL -- Florida's Prepaid College Tuition Plan has been forced to change its rules after a divorced dad cashed in his daughter's college fund.[30] Unlike some state plans, Pennsylvania's 16-year-old tuition plan is backed only by the health of the fund itself -- not by the state budget. "The Commonwealth is not obligated to make up any difference if the program fund couldn't meet all its obligations," McGrath said. "That's why we call it 'lower risk' but not 'risk free.' We certainly hope to never get into that situation.[21] According to the Associated Press, given the current condition of the fund's assets, the state would only be able to pay nine more years of tuition.[22] Keep in mind, the Legislature has for years relied on raiding environmental, housing and health trust funds and special accounts for one-term funds to cover the state's ongoing needs, dropping huge IOUs left and right with no details on a payback plan. That includes the Lawton Chiles Endowment Fund ' meant to pay for health care for children and elders and swept nearly clean by lawmakers in the January special session.[11]
A major part of any solution to the issue is the help of the state's colleges and universities. They helped to create the problem by raising tuition far faster than the rate of inflation for years, and they need to be part of the solution now. There is no way that the Legislature and PACT will be able to climb this mountain of debt if state colleges and universities keep raising the height of the mountain with increased tuition. To their credit, two colleges already have volunteered to help.[14] Troy Chancellor Jack Hawkins said the Troy board of trustees waived tuition increases for three years for current and future Troy students enrolled in PACT.[17] Hawkins said the Troy board understands the PACT board will fund tuition and fees for 2009 at 2008 prices. Hawkins said the waiver will begin this fall semester and run through spring 2012. It will apply to PACT participants currently enrolled at Troy as well as PACT students applying for enrollment.[17]
Troy University is the first and only of Alabama'''s universities to agree to the proposal requested by PACT so far. '''Some others said the problem is not theirs and declined to do what the PACT board has asked,''' Hawkins said.[1] Jack Hawkins is the best college president in Alabama and his actions, along with the Troy board of trustees, is an example of how innovative and progressive Troy University is compared to the other colleges and universities in Alabama.[16]
'''While Alabama is not well poised to assume any new financial obligations, I hope the PACT board and the state'''s leaders will remember that PACT has been advertised for years as a reward for prudently investing in a child'''s future,''' Davis said. [8] A public hearing regarding the future of the PACT program is scheduled for today in Montgomery, and a board meeting will be held in Montgomery on March 24, according to Margaret Gunter, the director of Governmental Relations for the Alabama Commission on Higher Education.[19] "We are, just like everyone, trying to gain an accurate picture of what the facts are." Auburn University President Jay Gogue and University of Alabama System Chancellor Malcolm Portera released a joint statement on March 3 detailing their future courses of action with the PACT program. The statement said although they were in no position to help the program financially, they would provide specialists to aid in discussing the future of the program. "It is our hope that the PACT leadership will be able to work through this situation in these challenging economic times," the statement said.[19]
Right now, there are 3,800 students in the PACT program in the University of Alabama system.[22]
The PACT Program is currently finding itself in trouble due to the fact that they can't guarantee tuition for students after they guaranteed it earlier. Many students could be left out from the program that offered them a reduced tuition.[31]
Reynolds said there were misconceptions about exactly how PACT operates. He said Auburn University bills PACT for tuition costs, instead of billing individual students. While PACT proved reliable its first 19 years of existence, Reynolds said his office encourages students to apply for other forms of financial aid, too, including Pell Grants and students loans.[8]
The cost to the state would increase dramatically if attorney fees and perhaps even punitive damages start piling on. It's highly unlikely that PACT investments have any chance of rebounding strongly enough to make the program economically viable on its own. There needs to be an infusion of outside money to allow PACT to meet its financial obligations.[14] State treasurers repeatedly marketed the investment scheme as the PACT program.[26] State Treasurer Kay Ivey, who oversees the program, has sent letters to the nearly 49,000 participants warning the program "is hurting like every other retirement fund and investment account."[6] For the first time since it was implemented in 1990, the state-run program faces the challenge of remaining afloat. State treasurer Kay Ivey sent letters expressing her concern to 48,000 families last week.[8] State Treasurer Kay Ivey's office administers the program and the board will hold an open meeting March 24 to decide how to handle the financial problems.[12]
The purchase price was determined actuarially. Now comes Kay Ivey, who says the state is not obligated to hold up its end of the bargains made at the outset of the program, despite the plain language inducements or promises to cause investors to pay cash to the program.[26]
The letter PACT participants received said the program was currently working with the state's public colleges and universities to "allow PACT benefits to be consistently paid," despite the current economic downturn.[19] At Wallace Community College Selma, the message is not so bleak. Director of financial aid Endora Todd said her office has not received any phone calls from the schools 20 to 30 PACT participants. Todd said she believes the state will take action to right the programs before it is too late.[8]
Hayes, like others in financial aid offices across the state, does not have much to tell concerned parents or students either. Like PACT participants, Hayes said she is pulling for the program.[8]
Parents like Sean Capps, who recently learned his 9th grade son's college tuition from PACT is no guarantee, struggle with what to do now. "My wife and i talked about it last night for a while. it's been a big thing. do we pull out. do we not pull out?" says Capps.[22] Parents join the program as a way to lock-in tuition at today'''s rates. It is a way for families to make college payments starting when their children are young, so that when they finish high school the money for college is there.[4] Families' money is pooled and invested, and the tuition and fees are paid when the child enters college.[29]
If we had saved on our own and did not purchase PACT then I would expect to pay whatever the tuition was at the time my child started college.[16] How nice! So those people who could not afford PACT or who chose not to participate foreseeing the risk associated - have to pay increased tuition? I guess according to Chancellor Hawkins only PACT participants have been affected by the downturn in the economy.[16]
The state treasury department and administrators of the PACT plan announced on the Web site www.800alapact.com that a public hearing would be held March 12 for participants to voice concerns to board members.[18] "Y'all get off your A-double-S and let's get something done." Prattville resident Alice Chapell was among dozens to address the board during the public hearing and told them the matter is simple. "I teach my daughter to be responsible and accountable," said Chapell, who's been paying into a PACT plan since her daughter was born 14 years ago.[12]
Ivey drew criticism from the Democratic Party and from a Democratic gubernatorial candidate, U.S. Rep. Artur Davis, of Birmingham. Davis said a legislative audit of the PACT plan is needed in order to "independently and reliably establish its fiscal condition and restore public confidence in the program." "The special audit would provide a thorough assessment of PACT's current holdings and investments, processes and oversight structure," he said.[17] Last week, Ivey said the PACT plan doesn't have enough money to pay obligations and invited public comment.[17]
All of the state's public colleges should do at least as much as Troy and ASU. While he did not play a role in creating this situation, Gov. Bob Riley should take the lead in trying to pull all of the players together to try to find a solution that will keep this controversy out of the courts while allowing the state to meet its moral obligation to PACT participants.[14]
Alabama's plan is hardest hit, and state officials there have warned parents that the full cost of college can no longer be promised, according to the Associated Press.[29] With an ailing economy squeezing parents, universities and state budgets alike, the difference between a "risk free" plan and a "lower risk" plan might become a bone of contention for investors, as Alabama considers reducing payments to families.[21]
The PACT made between the state and Alabama families continues to lack public confidence.[22] Only a few hundred parents and grandparents were able to attend the Thursday meeting in Montgomery (not a convenient location for most of the state's working residents) but I would not be surprised to hear that there were thousands of emails and letters received. Rest assured the number of PACT families in attendance does not reflect the amount of interest these famiies have.[9]
The best thing to do might be to take a wait and see approach. If your child is going to graduate next year, you need to investigate this situation right now because you need to know whether your child will be able to afford going to their state college of choice. Otherwise, these families will need to consider other options.[5] The other half of the benefits go to students attending Maryland's state colleges and universities with the remaining funding covering tuition at private schools and out-of-state institutions.[24] Troy University, one of the smallest of the state'''s major universities in terms of enrollment, will take the hit to aid students financially. These schools have done well to recognize a need and make sacrifices for the good of those they serve.[2] Troy Chancellor Jack Hawkins said the move will cost the university more than $2.5 million and is intended to help keep students in school.[10]
PACT has 50,000 policyholders. Ivey, a Republican who said she's considering running for governor, inherited the PACT administration when she took office in 2003. It had $792 million in assets at the end of 2007, but only $463 million at the end of February, apparently the victim of a declining stock market. [17] When I joined PACT, it was made clear that I could lose money by participating. It was clearly stated in all the brochures and paperwork I signed when I enrolled my daughter. This is bad situation for PACT members, and it seem the fund has mismanaged, but there are no guarantees in the stock market.[16] With a slumping stock market, the value of PACT'''s investments dropped 45 percent since September 2007.[8]
Steve Curry, assistant to Tennessee's treasurer, said the difference can be made up by a stock market upswing or by transferring money from the state budget.[21] '''We encourage students to fill out the FAFSA regardless,''' Reynolds said. '''Any incoming freshman, they'''re eligible for $5,500 in a loan, period.''' Reynolds said this advice has not changed with the stock market either. He said a troubled economy only makes a financial safety net more important.[8]
Tennessee's plan ended last year with assets falling $12 million below the present value of future benefits. [21] As of Dec. 31, the Maryland plan had an actuarial deficit of $82.3 million - meaning based on the projected value of assets and liabilities, the plan is short that much in meeting future obligations.[29]
Neither has happened yet. One of the worst hit is Alabama's tuition savings plan, which lost nearly half its assets since September 2007, leaving the fund with about half of what it needs to meet commitments. [21] Without a market upswing or cash infusion, Alabama's plan can afford to pay full tuition for about another nine years.[21] The way the program works is that parents or family members pay a specified amount in a lump sum or over a period of years that is supposed to be the value of tuition at a four-year institution.[4] Parents and grandparents who paid into the program years ago are justifiably angry. One clearly upset grandparent was probably speaking for most of them when he told the board at a public hearing last week: "Y'all are going to have to pay for this, you understand? Y'all get off your A-double-S and let's get something done."[14]
Parents pay a fixed amount when a child is young in anticipation of getting the tuition and mandatory fees paid at an in-state public university when the child finishes high school.[5]
'''We don'''t want to be fair to one group of students and unfair to another,''' Hawkins said. '''When the general public is believing tuition is guaranteed by this program'''we wanted to offer what would be some relief to that portion of students. '''I don'''t think it'''s necessarily a fair comparison because if students haven'''t done PACT, then they'''re not assuming their tuition is held.'''[1] Wednesday, U.S. Rep. Artur Davis, D-Birmingham, called on the Legislature to authorize a special audit to determine the financial condition of the trust fund in light of a Birmingham News report that an audit was omitted from the 2007 financial statement, the most recent one made available by program managers. "Given the continued uncertainty concerning the status of the fund and the emerging questions regarding its management, a new independent audit is a clear and necessary step toward restoring public confidence and firmly establishing the basic facts surrounding PACT's fiscal health," said Davis, a candidate for governor.[10] I invested in PACT and it paid for my child's education and she completed her degree within the confines of the program. Others who invested got caught in the bad fiscal times that our country has been experiencing, but it wasn't their investing it was the PACT board.[1] Many students received a letter informing them of the of the PACT program's money woes last week.[19] A tough loss for sure, but nowhere near the catastrophic loss suffered by the PACT program.[4]
The program was created in response to the Section 529 of the Internal Revenue Code of 1986, which authorizes states to create college savings programs. Alabama was the third state in the nation to create such a program. [19] Every state's college savings plans have taken a huge hit according to the Baltimore Sun.[24]
We knew if our children were going to be able to attend college, we had to do something early, & that is exactly what we did. I truly feel for those who were unfortunate not to be able to plan, or to save for a college fund. Please do not knock those of us who were able to, & especially those who, like us, passed on the nicer cars, houses, etc., to be able to help our children obtain a college education.[16] You will still be short. When I was in school I was short by about a semester of tution, now from people that I know in college its about a year short. I got a construction job during the summer breaks and on spring break to help my parents out, not because it was expected but because I appreciated what they did. I appauled the parents who make the sacrafice for their children to have a better life.[16] We worry about our jobs, our retirement, and our children'''s future. Those concerns have now spread to thousands of Alabama families who thought they did everything they needed to make sure they could send their children to college.[4]
Prepaid plans allow families to pay for college in advance, locking in the price of college based on today's prices.[29] '''The change allows parents and guardians to ensure that a child'''s education funding will be properly protected, no matter the status of the parental relationship,''' said Senator Deutch in a prepared statement. Senator Deutch began working on the rule change after he was approached by a constituent whose husband had cashed in her child'''s Prepaid Plan after divorce proceedings. The new rule requires the co-purchasers to provide written consent for any changes to a plan, ensuring this will not happen to others.[30] Senator Ted Deutch, (D) Boca Raton, demanded the Prepaid Program revise a rule allowing only one person to be designated the purchaser of a Prepaid Plan.[30]
Until 1995, the program's literature repeatedly said the plan "will guarantee payment" but plan officials say there has never been a guarantee in state law and that's why the language was removed.[12] In trouble are programs in Tennessee, South Carolina, West Virginia and Washington. Only seven of the 18 states with such programs back them up if money runs short.[7] While the state is not legally obligated to save the floundering program, Rep. Artur Davis said in a press release that students should not be punished due to government failures.[8] '''However, I don'''t think it was advertised in a risk-free manner.''' Regardless of how the program was advertised, University of Alabama accounting assistant Lin Hayes said the office of student financial aid received its share of phone calls last week.[8] The leaders of Auburn University and the University of Alabama System ' which together by far attract the most PACT students ' have rejected calls for help from PACT officials. That simply should not be acceptable.[14]
State Democratic Party Chairman Joe Turnham said PACT needs to be assessed. "We're going to find a solution to this for the state of Alabama," said Dr. Randy Brinson, president of the Christian Coalition of Alabama, who joined Bentley and Turnham at a news conference.[17] As understandable as that sentiment is, it will take much more than the PACT board to effectively act. While the board is ultimately responsible for creating this quagmire, it probably will take a concerted effort by the board, the governor, the Legislature and the state's colleges and universities to rescue the situation.[14] Now those whose economic circumstances prevented them from buying a PACT contract will get the double-whammy, having to work their own way through college AND having to make up the difference for those who had money and invested it poorly by investing in PACT.[1] THE FACT IS that the early PACT contracts, at least through 1993 and maybe beyond, do provide for guaranteed tuition benefits. Is that not a promise? Are you one of those who said it depends on what the definition of "is" is??? We are not whiners, and the purchase of the contracts were not mistakes.[9]
'''We went into it with the hope that we would get four years of tuition paid for,''' Orr said. '''I was thinking, of course, that the cost of education was going to go up, and I figured this sounded like a good deal.''' [18] The states expected the earnings from the investments would exceed the cost of tuition.[27] The nearly 49,000 enrolled recently received letters from state treasurer Kay Ivey saying full costs might not be met.[13]
The Retirement Systems of Alabama, the pension fund for teachers and state employees, has lost 23 percent in that same time frame. [4] The program's assets have dropped from $899 million in September 2007 to $463 million at the end of January, which represents a 48 percent decline.[14] According to a press release, the program held assets of $899 million at the end of 2007. Mike Orr of Pelham said the 48 percent loss worries him tremendously.[18]
Officials scheduled the hearing after notifying participants that the economic downturn had caused the program's assets to drop by 48 percent in the last 1 years.[25]
Assets at year's end totaled $429 million, down from $541 million six months earlier.[29]
Unless the market shifts quickly or the plan receives an infusion of cash, it would run out of money after nine more years of paying full tuition. [6] South Carolina made that move in 2006 after years of rising tuition and shrinking state support.[6] Troy State will claim to be eating the difference but watch the back door of "revenue enhancement". Instead of raising tuition they will raise fees.[1]
I have original documentation sent to investors by George Wallace Jr. and Lucy Baxley. It is irrefutable that the language in the documentation guarantees college tuition will be paid.[26] Our investments have lost ground," said Kathleen McGrath, director of the Tuition Account Programs Bureau at the Pennsylvania Treasury Department. "At this point, it's a concern, but it's not a crisis."[21] Todd disagreed with Davis''' comment that PACT was advertised as a virtually risk-free program. She said the program'''s document clearly explain risks involved with the investments.[8]
As a parent of kids with PACT, it does not cover everything needed for college.[16] My parents purchased the PACT plan for me and my brother, in 1991 or '92, I was in the 7th grade and my brother was born in 1990. My parents had to empty a savings account for this to happen. That was what they were saving it for.[16] I know that every one has been affected by the downturn in the economy but that is why 48,000 people purchased the PACT plan.[16]
Just half of the 10-member board led by Ivey attended the hearing and did not take questions or address the crowd of more than 200 people who gathered at Frazer United Methodist Church. The lack of feedback added more frustration for those already left shocked by Ivey's recent letter warning of the plan's troubles but offering no clue of what options will be tried. "I thought it was just an annual letter they send out saying everything was fine and to actually read it I was like 'Oh my God!'," said Sherry Douglas, who drove two hours from Dothan to attend the hearing with her 16-year-old daughter, Ashley.[12]
As a parent like April Guin, I have to say that the wording of the contracts and advertising materials was more than deceitful, it apparently was a bald-faced lie. That's the only way to reconcile the statements made then with the current claims that the law says nothing at all is guaranteed. Personally, I expect our magnificent state government to leave us in the lurch and fail to live up to their responsibilities again.[10]
Parents have signed up nearly 13,000 children to the Texas Tuition Promise Fund during the first enrollment period, which took place from Sept. 1, 2008, to Feb. 28, 2009.[28] In tight economic conditions, Hawkins said tuition increases are something the university can'''t help but to consider.[1] Auburn University'''s Student Financial Services office received an avalanche of phone calls from the school'''s 2,600 participants after Ivey'''s announcement.[8] For the 2008-2009 school year, Reynolds said PACT paid every Auburn participant'''s bills.[8]
Director Mike Reynolds said the school has not received official word from the treasurer'''s office regarding the program'''s future.[8]
To date, no plan has failed and no student has been unable to attend college due to plan related problems. [24] The combination of the state and state colleges being involved should have been big red flags to warn people they were about to be skinned.[1]
Space shuttle Discovery is rocketing toward the international space station after more than a month of delays. Susan Stanton, the former Largo city manager who was fired after her plans to have a sex change became public is a finalist for the city manager's job in Lake Worth. Andrew "Test" Martin, who wrestled for almost 10 years, mostly for World Wrestling Entertainment, was found dead inside his apartment on Harbor Place Drive around 8 o'clock. [30]
SOURCES
1. Troy Messenger | Troy to waive tuition jumps for PACT
2. Selma Times-Journal | Schools make admirable sacrifices
3. Drawing Kay Ivey - Croweblog - al.com
4. Clanton Advertiser | Tuition program faces trouble
5. Clanton Advertiser | Tuition program turns risky
6. The Associated Press: Market endangers state-run prepaid tuition plans
7. Market endangers state-run prepaid tuition plans | WCBD
8. Selma Times-Journal | PACT program on shaky ground
9. Updated: Parents urge PACT board to honor tuition promises - Breaking News from The Birmingham News - al.com
10. Public hearing scheduled today on PACT problems - Breaking News from The Birmingham News - al.com
11. Our views: Don't rob Prepaid | floridatoday.com | FLORIDA TODAY
12. Anger, frustration mark tuition meeting | Opelika-Auburn News
13. WZTV FOX 17/Nashville
14. Editorial: State has moral obligation to make good on prepaid tuition | montgomeryadvertiser.com | Montgomery Advertiser
15. WTVM.com and WTVM News Leader 9, Columbus, GA | ASU waives increases for prepaid tuition plan
16. Troy University offers cost break to students in Alabama's ailing prepaid tuition program - Breaking News from The Birmingham News - al.com
17. PACT woes draw interest and criticism | TimesDaily.com | The Times Daily | Florence, AL
18. Shelby County Reporter | Parents have uneasy feeling over PACT plan's future
19. Crimson White - PACT program in jeopardy
20. State's prepaid college tuition program has lost 46 percent | www.southalabamian.com | The South Alabamian
21. LancasterOnline.com:News:Tuition savings plans struggle
22. I Thought We Made a Pact? - CBS 42
23. Md. prepaid tuition plan deficit grows to $80M - Examiner.com
24. Maryland Prepaid Tuition Deficit Tops $80 Million | SayCampusLife
25. Public hearing planned Thursday on Alabama's prepaid college tuition plan - WHNT
26. State has clear obligation to PACT investors | montgomeryadvertiser.com | Montgomery Advertiser
27. El Paso/Las Cruces News, Weather, Sports and Entertainment - KDBC 4 - We are CBS! | Market endangers state-run prepaid tuition plans
28. Comptroller sells $239 million in prepaid tuition - Austin Business Journal:
29. Prepaid tuition plan deficit hits $80 million -- baltimoresun.com
30. Prepaid tuition abuse spurs change | WFTS-TV
31. MyFoxAL
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