JACKSONVILLE, Fla. – Parents and students have until Wednesday to take advantage of the Florida Prepaid Plan enrollment. It allows residents to lock in future college tuition costs with monthly payments.
Most high-paying jobs require a college degree, and college degrees can cost a lot of money. Sounds like a Catch-22 right? On average, Florida college graduates with student loans owe $24,000.
"I didn't know how much college costs or how people generally pay for it," said UNF freshman Marisa Mickler. "But senior year, it really hit me!"
That's the case for many students, but for Mickler, tuition is already paid for. In high school, she found out her parents had previously enrolled her in the Florida Prepaid college program.
"Florida Prepaid actually lets you lock in the current tuition," said Marla Lewis, associate director of financial aid at UNF.
There are five different tuition and dormitory plans with payments as low as $47 per month. Florida Prepaid pays the cost covered under your plan at any public university or college in the state, even if the tuition is higher than expected when you enrolled.
The prepaid plan is guaranteed by the state so you can never lose the money you put in.
"The best gift they ever gave me besides my siblings was Florida Prepaid, because I see all the stress students and my friends are going through, and I don't have to deal with that,” Mickler said.
UNF Sophomore Mark Morelock is also covered through a Florida Prepaid Plan. He says whether you decided to take advantage of the program or not, parents should talk to their kids about college finances and payment options early on.
"That's been soo wonderful to not have to worry about finances or stress out about that as I already have enough stress with classes in school," Morelock said.
Morelock said when he started classes at UNF, the process was simple. Financial advisers on campus were able to keep him updated on when the money would be placed into his account, how much and what was covered.
If your child decides to attend an out-of-state or private college, the plan will pay the same amount as it would pay at a public college or university in Florida.
One St. Johns County High School student will win two free years of college through a Florida Prepaid scholarship program. To enter, the student must submit a 500-word essay on The Value of Public Service, along with a letter of recommendation.
Answers to some common questions about the Florida Prepaid Plan
How are Florida Prepaid Plan prices determined?
Florida Prepaid Plan prices are actuarially determined. They take into consideration current tuition and fee rates, tuition inflation and investment yields. The current tuition and fee rates are based on a weighted average of fees charged by Florida colleges and universities. The price you pay for your Florida Prepaid Plan is less than what college is expected to cost in the future.
If we are paying less than it will cost for future tuition, who makes up for the gap?
When Florida Prepaid receives a payment on your plan, it is invested to earn the additional monies necessary to pay for future college costs. They handle all the investing and your investment is guaranteed by the state of Florida. You cannot lose money on your investment.
Who owns the Florida Prepaid Plan?
The account owner owns the plan and all contributions and retains full control over the plan and who uses it.
Is there another savings option through Florida Prepaid?
Yes. Florida Prepaid offers a Florida 529 Savings Plan. It allows you to develop your own plant o save for college. You decide how much you want to save and when you want to save. You also get to choose how you want to invest your savings using the investment options offered by the plan. Savings Plans are not guaranteed, so the value of your investment is subject to market fluctuations.