May 22, 2013
The struggling economy and stock market caused Alabama's prepaid college tuition program's investments to lose about $56 million during the fiscal year ending Sept. 30.
The program's annual report was released Wednesday. It shows the loss caused the program to dip below the 100 percent funding status for the first time since it began 13 years ago.
But State Treasurer Kay Ivey said the state's Prepaid Affordable College Tuition program is still one of the soundest college savings plans in the country and will have no problem paying college costs for children enrolled.
Ivey said the investment losses are similar to or less severe than those suffered by prepaid tuition programs in other states. She said the losses were caused by economic conditions and are not the fault of past or current staff in the treasurer's office, which operates the program.
