Today’s Herald and Sun-Sentinel ran stories about a proposal in the FL Senate to suspend the ever-popular FL Prepaid Program. While this proposal is far from becoming law, it does indicate the dire financial straits that the State finds itself. The concern from Sen. Evelyn Lynn (R-Ormond Beach) is that, with rising state tuition of 15% per year, the FL Prepaid Program will not have the earnings to keep up with such tuition hikes given the volatility in the stock market. Even though the Plan does not invest in the stock market, tuition hikes of 15% per year put a severe financial strain on a plan that is based on 6-7% increases per year.
The Good News: if you already have a plan, you are unaffected by this proposal.
The Bad News: The FL Prepaid Plan only covers a small fraction of the total cost of attendance (COA). The current COA at a FL school is, on average, $18,000 per year. That includes tuition, room, board, books, fees, travel money, pizza money, etc. The typical FL Prepaid Plan provides about $3,000 – $4,000 per year. That leaves you with about 15-Large left over to pay for one year at a State U.
The Ugly News: Bright Futures, the scholarship program that is funded by our collective lottery addiction, is expected to shrink by $1,000 per student. And that’s if your student can meet the new standards of qualification. Also, it’s getting tougher to even get accepted to a FL state school, as reported by the Sun Sentinel this morning.
If you are tossing and turning at night, wondering if you will be able to afford a college education for your child, then don’t miss my upcoming workshop next Wednesday, March 23. To register, visit www.LearnCollegeFunding.com. The event is free, but it could cost you thousands if you don’t hear this information.
Also, if you missed my segment last night on “The Jonathan Zaslow Show”, then click here to listen in for 10 minutes of pure infotainment.