I had no sooner posted my blog artice about 529 Plans being potentially pillaged by Florida Legislature when MSN posts this article about the underfunding of several other PREPAID plans that may destroy the savings of families for college in several states! To see the full article: CLICK HERE.
This one is even MORE disturbing than the previous posting. Florida at least had funded the deposits of trusting families so they are getting their promised returns. There is just so much money sitting in the savings account "lockbox" that the state is drooling over the prospect of unused money.
Per this article, State-run trust funds for parents who want to pay off college tuition before their children enroll are running short on cash, and program officials worry they won't be able to pay for students who are counting on the money! The rising cost of college and plunging stock market have combined to create a disparity between what some of the 18 states' prepaid tuition plans have on the books and what they're supposed to pay.
The worst case is in Alabama, where the market meltdown cut funds nearly in half. Alabama officials are telling parents the full cost of college isn't a sure thing. "I thought the money was in the bank," said Montgomery attorney Larry Menefee, who was caught by surprise when he received a letter telling him tuition for his triplet sons wasn't guaranteed.
WOW! How would you feel if your PREPAID COLLEGE account was not really prepaid or safe in the hands of the state?! Is a deal a deal?
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