pay the way
pact update
Update
The Impact of PACT
by Jasmine York
As you may know, the option to opt into the Alabama Prepaid Affordable
College Tuition (PACT) program has been closed since 2009 due to its
near collapse following the economic recession of 2008. That, in addition
to the steady increase in tuition rates, has left PACT unable to fulfill
its original promise to pay in full the annual tuition of students whose
parents invested in this prepaid
program.
Instead of shutting the
program down completely,
however, PACT representatives
determined that they would
be able to continue paying the
tuition in full, if tuition rates
showed no increase after the
fall of 2010, “the point of no
return.”
“39,000 students are
still affected by the
PACT program,” said
Patti Lambert member
of Alabama PACT Board
of Directors and PACT
participant.
Following a settlement made
in 2013, courts ruled in favor
of PACT, deeming them
responsible for paying the full annual amount of tuition rates established
in 2010 by public institutions (and weighted average of public tuition
and mandatory fees to private institutions). Parents and students are
responsible for covering the difference if tuition rates have increased since
then.
“I am sure each school handles PACT differently,” said Martin Weldon,
Assistant Director of Student Financial Services at Jacksonville State
University. “We require a copy of the pre-paid college tuition plans (PCTP)
eligibility letter be on file. We will bill PCTP sometime near the end of the
semester. That way, i