Officials Argue Whether PACT Program is "Guaranteed"

Alabama

Staff Photo: Erin Evans
Georgia Perimeter College students returned to classes Monday after Thanksgiving Break. Freshman Josh Parker, a Newton campus student from Loganville, took time to study at the school’s new library between classes Monday. This fall, GPC’s enrollment grew by 1,741 students to 24,549, or 7.6 percent, according to the University System of Georgia’s 2009 fall enrollment report.

Alabama's prepaid college tuition plan, better known as PACT, is raising questions about whether those putting money in the program were guaranteed tuition would be paid.

Lucy Baxley says she removed all guarantees from promotional literature and contracts for the plan when she was state treasurer in 1995.

Baxley said she removed the word "guarantee" because there was no legal guarantee in state law.

The program used the word "guarantee" when Baxley’s predecessor in the treasurer's office, George Wallace Jr., launched the program 20 years ago.

Wallace disagrees with Baxley and says there is a legal obligation by the state to provide tuition.


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  • by cooper Location: prattville on Feb 26, 2010 at 06:19 PM
    i have been listening to these commercials for the past 4 1/2 years. I always heard the tag line that stated that it was not a guaranteed investment. i think it is unfair for PACT participants to be bailed out if I am not going to be bailed out. We both took part in a 529 plan and we have both seen seen a huge negative market hit. As my state representative told me today, you had to have turned a deaf ear to have not heard the warning the last ten years. Thats nobodys fault but your own. Senate, if you bail out PACT, you better bail out all of us. If not, you have forgotten what parity is all about.
  • by Patti Lambert Location: Decatur on Feb 7, 2010 at 06:22 AM
    What a shame if this is true. If Lucy thought it was not guaranted seems like the disclosure to the people who were purchasing the contracts should have been made... and not kept a secret. The action of selling Pre-paid college tuition, fancy ads, interviews endorsing the program thru the state by the State Treasurer speaks volumes..It is either a State program ,administered by the State for the citizens of the state --or folks we may be looking at Fraud..At Save Alabama Pact we are a positive group that does not support law suits-- We support that the State stand behind the 45,000 current contracts for 100% of what was promised for 100% of the current Contract Holders. We applaud Sen. Ted Little and Rep. Greg Wren and Craig Ford for their leadership. We support your Bills to Save Alabama Pact as well as any other solution that may come out of the State House this session.Please do not let our childrens money be spent in the court room-- It needs to be spent in the admission office....
  • by LIZ Location: ENTERPRISE on Jan 25, 2010 at 09:59 AM
    WAS IT MISLEADING ON PURPOSE TO GET MONEY? WHAT HAPPEN TO THE MONEY THAT WAS IN PLACE FOR PACT? WAS THIS ANOTHER OF RILEY'S MISLEADING PLAN?
  • by Chad Location: Dothan,Al on Jan 24, 2010 at 06:06 PM
    Wow thats bad that you can put your money in something for many years and then find out its not guarenteed. They need to shut it down if thats the case. This program put my thru college and I would have felt good about using it for my kids but I will probably steer clear of it now.
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