State Pre-Paid Tuition Plans In Peril

Parent Cafe
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<p>The fact that many states have stopped or renegotiated their PPT plans in not new news. However, this article says that some states are in such trouble that there is talk of not honoring the current contracts. </p>

<p>Prepaid</a> tuition plans threatened? - Education- msnbc.com</p>

<p>Our state (SC) is one of those in trouble. Over 37 million dollar shortfall. Both of our kids are using the PPT plans to pay for school. If SC pulls the rug, it will hurt.</p>

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<p>In OH they froze the plans from new entrants about 8 years ago and have frozen instate tuition for the past 2 years and are now talking about a third year freeze. As a result the guaranteed tuition plan payouts have only gone up by about 1% (the cost of fees only) for the last several years (stinks if you don’t plan to do an instate).</p>