Monday, April 23, 2018
Education

State bumps up costs for Florida Prepaid College Plan

The Florida Prepaid College Plans announced new price points for its four investment programs on Thursday, in preparation for the new enrollment period that begins Monday and runs through Jan. 31.

A family would pay $331.59 monthly for a newborn entering the program for a four-year university plan. That's up from $297.90 monthly a year ago.

The three other plans — two years of university plus two years of college, four years of college and two years of college — would see similar rises. A one-time lump sum payment would be slightly less, because it does not include 4.09 percent interest applied to the monthly payments.

Program executive director Kevin Thompson said the higher prices are "primarily the result of anticipated increases in tuition costs." He noted that tuition has doubled in the past decade, and that by the time today's newborn reaches university, Florida tuition and fees are projected to approach $140,000.

Participating in the prepaid program allows parents the opportunity to lock in their costs at much lower rates with the security that the investment is guaranteed by the state, Thompson said. Families seeking a lower monthly cost also can invest in the state's 529 college savings plan, he added. If students choose to attend university out of state, the plan value is transferable. For details visit myfloridaprepaid.com.

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