Thousands of lucky families across Florida, who are using Florida’s Prepaid College Plan to cover the future cost of college, got a pleasant surprise last week.
The state has cut costs and will be refunding $500 million dollars, or about $4,700 per household. This reduction has been made possible due to successive years of lower than anticipated Florida tuition and fee increases, say state officials.
As a result, over 200,000 Prepaid accounts opened since 2008 will be receiving a refund, and over 100,000 of those accounts will now be considered paid in full, with no additional payments due. The remaining Plans will have lower monthly payment amounts and may be paid off earlier than anticipated due to the price reduction.
Plan holders have the option of receiving their refunds in cash, or may transfer their refund to a Florida Prepaid savings account to cover other college expenses like books, supplies and housing. Pricing for the upcoming 2020 plan year will have the lowest rate in five years, starting at $44 per month for a newborn.
Florida Prepaid is the largest, longest running and most successful prepaid plan in the nation with nearly 2 million Florida Prepaid College Plans purchased and more than $14 billion in assets.
Prepaid Plans are guaranteed by the State of Florida, so families can never lose money in the Plan. If a child attends a private institution or out-of-state school, a Prepaid Plan will pay the same amount as a public college or university in Florida.
For more information about Florida Prepaid College Plans, go to MyFloridaPrepaid.com.