AL Supreme Court Upholds Reduced Rates for PACT

Tools

By Alabama News Network

Alabama's highest court says the state's financially troubled prepaid college tuition program can pay participants reduced rates rather than full tuition.

 

In an opinion announced Friday, the Alabama Supreme Court affirmed a trial court ruling that a 2012 law permitting reduced tuition payments is constitutional, and can be applied to participants who entered the program years before the law passed.

 

Under the Prepaid Affordable College Tuition plan, or PACT, families could pay a fixed amount when a child was young. Upon graduation from high school, they'd receive four years of full tuition at a state university.

 

The program invested the payments and used the income to pay tuition without any problems for nearly two decades. But it faltered when stock values plunged in 2008.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Add a comment

Name:

Comment: 1000 Characters Left

WNCF and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. Comments are posted on site immediately and without station moderation. If you feel a comment is inappropriate you may flag it for review. For guidelines on flagging comments see our Terms & Conditions. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

ABC Montgomery Poll

Which Restaurants Would You Most Like to See in Montgomery? (vote for one or more)

  • Benihana
  • California Pizza Kitchen
  • Chuy's
  • J. Alexander's
  • Landry's Seafood
  • P.F. Chang's
  • Romano's Macaroni Grill
  • Ruth's Chris Steak House