Prepaid College Tuition

Enrollment starts Monday in the state's prepaid tuition program, which helps parents lock in today's college tuition rates for their children.
BY LAURA FIGUEROA LFIGUEROA@MIAMIHERALD.COM

Invest today, save hundreds of dollars in tuition costs tomorrow -- that's the hope for many parents interested in enrolling their children in the state's prepaid tuition program, which kicks off enrollment Monday.
Starting Monday through Jan. 31, parents who enroll in the state-sponsored Florida Prepaid Plan will lock in the 2009-2010 tuition rate for Florida's state universities and community colleges -- no matter how far away their child's matriculation may be.

A parent who signs up Feb. 1 or after will be locking in the 2010-2011 rate.
The price of tuition typically goes up about 6 percent a year. This year, the state's public universities were given permission to increase their tuition by up to 15 percent in order to make up the difference in state and federal funding cuts.
Florida International University and the University of Florida have already done so.
``The cost of higher education is rising faster than inflation,'' said Susan James, spokeswoman for the Florida Prepaid College Plan Board.
``Now is naturally the best time to lock in a secure tuition rate without worrying if tuition rises again.''

Since 1988, the program has sold more than 1.4 million prepaid tuition plans in Florida, which parents, guardians, or relatives can choose to pay in a lump sum or through monthly installments.
Roughly one in 10 children living in Florida are covered by the plan, which parents can buy as soon as their child is born or by the time their child reaches their junior year of high school.

If the young scholar opts to attend a private or out-of-state school, the money is returned to the parent or can be transferred to the school of choice.
Also, a child who wins a scholarship can use money out of the Prepaid Plan to pay for other school expenses, like textbooks or dorm fees.
``The prepaid plan is guaranteed by the state, when you purchase a Florida prepaid plan, it's always going to be there for the student,'' James said.
``A scholarship, like the Bright Futures scholarship, will not invalidate your existing plan, it serves as a complement.''

Even as prices continue to increase statewide, Florida's average tuition rate is still nearly half of what students pay nationwide for attending a four-year public university.
Tuitions at Florida's public schools range from $3,700 to $3,900, while the national average is $6,585, according to the College Board.
To accommodate the varying financial and educational needs, the prepaid plan offers four plans:
• Paying for two years at a community college.
• Paying for four years at an undergraduate institution.
• Paying for a combination of two years at a community college and two years at a public university.
• Opening a separate tax-free investment fund to store money for future college expenses like housing and books.
The latter option is available because even if parents are able to lock in tuition rates through a prepaid plan, tuition is only a fraction of the cost of getting an education.

There's still other expenses that can not be locked in at a certain price including dorm rooms, lab fees, textbooks and food.
``Tuition is only 16 percent of the total higher education expenses,'' James said. ``It's never too early to start planning ahead.''