Offering families affordable ways to save for college
TALLAHASSEE – The Florida Prepaid College Board sold its first prepaid plan in 1988. Since then, about 184,000 students have used their Florida Prepaid College Plan benefits at universities and colleges, and one out of 10 young Floridians, from babies to high school students, currently are enrolled in the Florida Prepaid College Plan.
The Florida Prepaid College Board is opening its 20th annual enrollment, Chairman Ted Hoepner announced today. The new 2007-08 Florida Prepaid College Plan prices, posted at www.florida529plans.com, are available from October 15, 2007 until the sign-up deadline of January 31, 2008. The price of a four-year university tuition plan starts at about $3 a day for a newborn. The two-year community college tuition plan begins at about $1 a day.
"A whole generation of children has grown up with the security and promise of having a Florida Prepaid College Plan," Governor Charlie Crist said. "The opportunity to send a child to college is a wonderful part of the American dream. By planning ahead, college is affordable."
"My parents enrolled me in the Florida Prepaid program when it was in its infancy in 1988. It was one of the best investments they ever made. Neither my parents nor I incurred any college debt," said Sharon Halverson, 32, a neonatal nurse who received bachelor’s and master’s degrees from the University of Florida. "By not having to dig myself out of debt, I was able to save money and was able to build a stable financial foundation. This has allowed me the freedom of being able to stay home and raise my son."
"Because of my appreciation and adoration of the Prepaid Program, one of the first things I did after my son was born was to enroll him in the program," Halverson said.
Having a Florida Prepaid College Plan helps students avoid debt, at a time when two-thirds of college graduates are burdened with loan debts averaging $19,202, according to the U.S. Department of Education’s latest data.
"I don’t know how anyone would not benefit from the program," said Eddie Borrego, 20, of Miami, a junior at Florida State University whose immigrant parents purchased a Florida Prepaid College Plan for him when he was a little boy. "I haven’t had any debt. I haven’t had to take out a loan." Borrego said his mother emphasized the importance of a college education by telling him, "Anything you have they can take in a minute, but an education is always with you."
Since 1988, families have purchased more than 1.2 million Florida Prepaid College Plans, making it the largest and most successful prepaid plan in the nation.
A freshman who entered a Florida public university this fall, whose family bought the Florida Prepaid College four-year university tuition plan when that student was a baby, paid $3,844 for four years of tuition that costs $11,373 today. That is a savings of more than $7,500.
"With college costs rising faster than inflation, it’s smart for families to start saving early by prepaying for college," Tom Wallace, Florida Prepaid College Board executive director, said. "The Florida Prepaid College Plan gives families ways to save for college that fit their budgets and fulfill their dreams of giving their child a college education."
The Florida Prepaid College Plan allows families to prepay for tuition, local fees, a new tuition differential fee and dormitory housing at today’s plan prices. The new tuition differential fee plan covers the cost of this fee that eventually may add up to as much as 30 to 40 percent of regular tuition at research-level state universities.
The Florida Prepaid College Plan is financially guaranteed§ by the state of Florida, so it is a safe way to save. Families don’t have to worry about the stock market or remembering to put money aside for college. Once a child is enrolled in the Florida Prepaid College Plan, payments do not increase.
When a child is ready for college, the Florida Prepaid College Plan covers the actual cost at any Florida public university or community college. If the student decides to attend a private college, an out-of-state college or a vocational/technical school, the value of the plan may be transferred to any eligible institution. To qualify for a plan, the child or the child’s parent/guardian must be a Florida resident. Parents, grandparents, friends and even businesses can purchase a plan.
Families can sign up online for the Florida Prepaid College Plan at www.florida529plans.com, or call 1-800-552-GRAD (4723) to request an Enrollment Kit and paper application in English or Spanish and to speak with a customer representative.
To obtain current plan prices, families must enroll by January 31, 2008. If they enroll after January 31, 2008, they will be subject to plan prices that go into effect as of October 2008.
For more information, contact Diane Hirth, Florida Prepaid College Board, (850) 488-8514 or e-mail diane.murdock@myfloridaprepaid.com.