Prepaid Tuition Programs Being Suspended

Ohio recently announced a one-year suspension in its prepaid tuition program and West Virginia, Kentucky, and Texas have also temporarily cut off new participants from their prepaid tuition plans. Colorado has halted new enrollments completely.

While every state plan has its own nuances, a prepaid tuition plan essentially allows families to “lock in” tuition at current levels through either a lump sum or payment plan.

These programs are being temporarily halted as the weak economy has hurt the states’ investment returns, which have failed to keep up with the rises in tuition. Such a scenario, apparently, was not forecasted by the programs' planners

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