ORLANDO, Fla. – Floridians thinking about college for their kids have through Tuesday to lock in a payment plan through Florida Prepaid.
The Florida Prepaid College Tuition program allows users to pay monthly into a plan to fund college tuition and other expenses for a Florida child. There are several monthly payment plans, ranging from a one-year university plan starting at $34 a month to a full four-year university tuition plan starting at $135 a month. Those prices are for an account set up for a newborn.
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Florida Prepaid officials said prices are at their lowest rate in 10 years because tuition has not gone up at state universities in over a decade.
“It’s a way for families to save for college early, in a way that fits their budget. Once you set up your plan and set up your payment schedule, the payment will never go up. It will always be the same,” said spokesperson Shannon Smith.
Any Florida resident can set up a Florida Prepaid plan for their child, who must also be a resident of the state. There are five plans to choose from: a 2-year Florida college plan, a 4-year Florida college plan, a plan for two years at a state college two years at a university, a one-year university plan, and a 4-year university plan.
The program estimates the future cost of college tuition and fees when calculating the monthly price of the plan you choose.
“The research shows that if you wait until a child is in middle school or high school to start thinking about paying for college, at that point the price tag is really overwhelming,” Smith said.
Florida Prepaid then invests the monthly payments to earn any additional money needed to cover those future costs. Since the State of Florida guarantees the plan, you will not lose anything you pay into it.
The money in the plan can be used at any Florida college or university, or at a vocational school. It can also be used out-of-state, and at private schools. If the child decides not to go to college, you can transfer the money to another family member, or request a refund. You also don’t lose your plan if you leave the state.
Parents can sign up for Florida Prepaid all year round, but the program said it’s best to enroll during the open enrollment period (which ends Tuesday) because prices change every year, and your costs could end up being higher.
For a deeper explanation of the Florida Prepaid program, and to learn how to set one up, head to the Florida Prepaid website.
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