Recently enrolled participants in the Florida Prepaid College Plan will be getting sizable dollar refunds, and future Prepaid contracts will drop $20,000 or more in price.
The Florida legislature just reduced future state college costs, which impacts future and existing Prepaid contracts.
Many years ago, the plans were a bargain, but skyrocketing “tuition differential” fees drove the price for a 4-year contract from $15,000 in 2007 to $54,000 last year, putting the plan out of reach for many Florida families.
Exact numbers aren’t yet available, but the Prepaid Board estimates that the cost of a 4-year prepaid plan could drop about $20,000.
Legislative staff reported that about 26,000 families will get refunds totaling $50 million.
According to the Florida Prepaid Board:
“It is expected that (next year’s plan) will be offered at the lowest price in 5 years.
The great news is not just for future Prepaid Plans. It is anticipated that more than 40,000 existing Prepaid Plans will see refunds and/or payment reductions because of the new law.”
Refunds are expected for 4-Year Florida University Plans and 2 + 2 Florida Plans purchased from Contract Year 2011 to 2014, as well as Tuition Differential Fee Plans purchased from Contract Year 2008 to 2014.
More than 1.6 million prepaid plans have been purchased and nearly 350,000 students have attended college using these plans.
There are helpful FAQs about the refunds on the Florida Prepaid site.
The takeaway: If you are due a refund, you need not take any action at this time. You’ll be hearing from the Prepaid Plan in September, with refund checks mailed shortly after.
If you were priced out of the Florida Prepaid Plan in the past, it’s time to take a second look. These cost reductions will make the plans – and a college education – much more affordable.