The Florida Prepaid College Plan Is Giving Out $225 Million In Refunds. Is Some Of That Money Yours?

The Florida Prepaid college plan is backed by the State of Florida so you can never lose your investment

If you have kids who participated in the Florida Prepaid college tuition plan, there may be a big refund waiting for you.

$225 million in refunds, to be exact. Here’s the details.

Where did all these refunds come from?

Earlier this year, the Florida Prepaid college tuition plan recalculated college costs and realized college tuition and fees did not go up as much as they had originally forecast. As a result, they decided to refund $500 million to over 224,000 Prepaid Plan students who had been charged in anticipation of higher prices. The refunds average $4,700 per student.

Thousands of people have already claimed their refunds, but 30,000 families have yet to do so.

What contract years are generating the refunds?

Good question!

Florida Prepaid Plan prices were reduced for most tuition, local fee and tuition differential fee plans purchased in contract years 2008-2019 with a projected college enrollment year of 2020 or later.

How do I know if I’m owed money?

That’s easy. Just visit the Florida Prepaid website at MyFloridaPrepaid.com and login to your account. You’ll see information on your balance, and whether or not you’re owed a refund.

I logged into my kids’ accounts just to double-check, since they participated in the Prepaid Plan. Sadly, there’s no refund for me. Their contracts were issued well before the contract refund dates of 2008-2019, as explained above.

But everyone who has participated in the Florida Prepaid Plan should go online to check. It only takes a minute, and you could score a big, fat refund or discover benefits you didn’t know you had.

What are my choices if I’m owed a refund?

The first option is to simply request a refund check.

A second option is to apply the refund money to another Florida Prepaid contract. This is a great option if you have other children or family members signed up for the Prepaid Plan.

A third option? Roll the money into a Florida 529 College Saving Plan to cover other qualified expenses like books, room and board, supplies and computers as well as tuition. (As a reminder, the Prepaid Plan only covers tuition, certain fees, and selected dorm costs).

“I don’t know anybody that could not use an extra $4,700 right now,” said Shannon Colavecchio, a spokeswoman for Florida Prepaid, in a media interview. “You know, whether you’re unemployed or maybe other things have gotten cut back, whatever that looks like. Maybe you’re homeschooling now and you need laptops for three kids.”

Bottom line? Florida Prepaid officials know this has been a tough year for Florida families. They want to make sure the refunds get to them as quickly as possible so the money can do the most good.

Remind me again how the Florida Prepaid works?

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.

All Prepaid Plans are guaranteed by the State of Florida, so you can never lose your investment.

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.

Also, be sure to check out our recent articles on the Florida Prepaid: “Lucky Florida Parents Get $500 Million In Prepaid College Refunds” and “April 30 Deadline To Lock In Florida Prepaid College Costs.”

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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