(FinancialHealth.net) – Parents in Florida who bought prepaid college plans for their kids received good news this week. Florida Governor Ron DeSantis announced the state is giving out $500 million in cash refunds to parents who bought the plans, with the average payout being $4,700.
That’s not all. Parents who are still paying for their plans will see their monthly payments decrease, due to lower tuition rates. The reduction impacts 224,000 accounts and of those, roughly 108,000 are now paid in full. Those who buy new plans in 2020 will see rates starting at $44 a month for one year of tuition — the lowest price in 5 years. In total, Florida families are saving $1.3 billion with lower rates and refunds.
If you’re a Florida resident, a Florida Prepaid plan purchased now can reduce the cost of tuition later. Here’s how it works. The tuition rate for the year you buy the plan gets locked in and the program spaces the payments out over several years. For example, if you have an infant, you can purchase a plan and pay it off over 17 years. Students can then use the plan to pay for college in-state or out-of-state.
DeSantis is working to keep the cost of college low in the state. At his press conference, he told families the new changes “will enhance Florida’s legacy as a nationwide leader in affordable post-secondary education” and help students avoid “debilitating debt.”
~Here’s to Your Financial Health!
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