Wed October 28, 2009
Prepaid College Tuition in Trouble
By Lisa Autry
Bowling Green, KY – Eighteen states, including Kentucky, offer families the chance to pay current tuition costs for college in the future. Jo Carol Ellis is with the Kentucky Higher Education Assistance Authority. She says a combination of factors have many prepaid college tuition programs facing deficits.
"You have a combination of years of significantly high tuition increases compounded by less than great investment markets."
Kentucky closed its prepaid tuition program to new applicants in 2004. It has an actuarial deficit of 59-million dollars, though officials say the fund, as it is today, is solvent.