10:16am

Wed March 4, 2009
WVAS Local

Pre-Paid College Tuition Program Struggles in Current Economy

Montgomery, Alabama – PREPAID TUITION

MONTGOMERY, Ala. (AP) - Alabama's prepaid college tuition
program is scrambling to figure out how to keep paying students'
tuition now that its investments are tumbling and its tuition costs
are rising.
State Treasurer Kay Ivey sent a letter to the 48,000
participants over the weekend to warn them of the financial
dilemma, but so far, talks with college officials have produced no
solution.
The Prepaid Affordable College Tuition Program has seen its
investments lose 45 percent of their value since September 2007. At
the same time, college tuition costs are rising faster than the
program anticipated.
The publisher of a financial aid Web site, Mark Kantrowitz, says
some other states are dealing with the same problem, but no state
has missed making tuition payments.
Summary of action in Alabama Legislature