MONTGOMERY, Ala. (AP) - Alabama's prepaid college tuition program is scrambling to figure out how to keep paying students' tuition now that its investments are tumbling and its tuition costs are rising.
State Treasurer Kay Ivey sent a letter to the 48,000 participants over the weekend to warn them of the financial dilemma, but so far, talks with college officials have produced no solution.
The Prepaid Affordable College Tuition Program has seen its investments lose 45 percent of their value since September 2007. At the same time, college tuition costs are rising faster than the program anticipated.
The publisher of a financial aid Web site, Mark Kantrowitz, says some other states are dealing with the same problem, but no state has missed making tuition payments.