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Alabama's Prepaid Tuition

By: Associated Press
By: Associated Press

State Treasurer Kay Ivey says Alabama's prepaid college tuition plan has not experienced the problems that has caused some states to limit enrollments.

Ivey said Alabama's Prepaid Affordable College Tuition Plan has enrolled 65,235 children since its beginning, and the program continues to enroll children.

The plan allows an amount to be paid into a state fund when a child is small. The state invests the money and then provides four years of tuition and mandatory fees at a state university.

Ivey, who administers Alabama's plan, said Alabama started one of the first plans in the country and built a big reserve before it had to begin paying out money.

The College Board reported last week that the average tuition increase at public four-year universities nationwide in 2003 was 14-percent.

The market value of the assets in Alabama's plan were nearly $557.17 million as of June 30.

The cost of enrolling a child born between Sept. 1 and Dec. 1 of this year is $15,364. The projected cost of 135 semester hours and mandatory fees for when the child would start college in 2022-2023 is $79,358.


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