11:08am

Thu February 25, 2010
WVAS Local

Ala Pact plan loses 5 percent of patricipants, official say

Montgomery, AL – - About 5 percent of the families
participating in Alabama's prepaid college tuition plan have
withdrawn their money since the program ran into financial problems
and its ability to pay full college costs became doubtful.
The board that oversees Alabama's Prepaid Affordable College
Tuition plan received a report Wednesday showing that 2,733
participants have pulled out since February 2009. That's the month
State Treasurer Kay Ivey sent participants a letter disclosing
financial problems caused by investment losses and tuition
increases.
Ivey says she's pleased only 5 percent withdrew. She says it
shows most participants are expecting the Legislature to fix the
problems.
One bill addressing those problems got approved Wednesday by the
House Education Appropriations Committee. It would allocate $236
million for the plan and cap tuition increases for participants.