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Price increases Florida Prepaid College for college

 

Wednesday, Oct 28,2009, 1:08:36 AM   Click:

Margo Johnson has always seen the Florida Prepaid College Plan too good to pass up - until this year.

Tuition Prepaid already sent its 22-year-old step-son to the University of South Florida and pay for its 10-year-old son's College.

But things do not seem too much for her 4-year-old twins Mackenzie and Mckayla.

Prices have soared this year, with the cost of a prepaid tuition plan has more than quadrupled. "It blows my mind," said Johnson, 44, a nurse from St. Petersburg.

The plan for prepaid tuition rate charged by the universities - which should increase year after year - shot a lump sum payment of $ 4614 for a year the new-born $ 19,776 last year. And it is above the tuition of basic state, which will also increase.

These increases occur when the average cost of a college training courses away from inflation. At national level, in state tuition and fees at four-year public universities now average $ 7020, an increase of 6.5 percent over last year, according to the College Board.

"It is near a breaking point," said James A. Boyle, president of College Parents of nonprofit America. "Schools really see no reason to lower their prices or keep prices steady because they see the lineup of people who want what they sell, a college diploma.

Enrollment period this year for the Florida Prepaid program began October 19 and continues until January 31.

The high price increases parents now are shocking for follow increases expected future tuition and fees, said Susan James, director of external affairs for the Florida College Prepaid Plan.

These price increases also reflect a fundamental change underway in Who pays for higher education in Florida. As the Legislature, state support to colleges and universities to increase tuition fees, more of the burden of education costs will fall on students and their families.

Tuition in Florida is the lowest in the nation's 49th, and legislators have begun to allow the state to 11 universities to charge a "differential" tuition above the tuition base of the state.

Starting this year, these two rates may increase fees up to 15 per cent per year to Florida school reached the national average. (Previously the differential tuition rates have been capped at 40 percent of regular tuition.)

"There will be catching up," James said. "Obviously, we have a long way to go because we are behind the national average."

The tuition increases, tuition fees paid in advance the program plans to increase its prices to keep pace. This year, the largest increases are the price plans for differential fees, where one-time price for a map of the newborn reaches $ 19,776.

Relax if you purchased your prepaid before January 31, 2007. You are exempt from the tax differential tuition.

Over the past 21 years, tuition fees paid in advance has become extremely popular. More than 917,700 children were enrolled in the program. Officials say one child in 10 in Florida, from newborns to high school students, has a prepaid plan.

With money dwindling, more parents do not buy a map package, but rather choose one of two programs prepaid monthly payment programs. The state also has a 529 education savings program that provides tax benefits for families who choose not to buy a prepaid.

Despite price increases, "said Clive James of the Florida program is" still a great way to prepay the cost of tuition. " Yet she acknowledges that the big jump in the price level differential tuition is a shock to many parents.

"Obviously, I think it will be a challenge for people who have children now determine how they are going to save for the education of their child four years of college," James said.

He used to be easier, Margo Johnson recalls.

In 1992, she and her husband, James, spent less than $ 7,000 on tuition prepaid plans and tuition for his son-Khristopher, now a researcher at the USF.

The couple also pays a total of about $ 58 per month in terms of schooling of a 2 +2 - two years of community college, followed by two years at a university - and a system of tuition for their 10 years , son Tucker.

But the cost of prepaid plans "increased well beyond the point where they can afford for their adopted twin girls.

They planned to create plans for the girls, too, but had these conversations as they saw their household finances squeezed as pay James Johnson and bonuses were cut at his job as a technologist in MRI.

"I am truly grateful that I got what I need to succeed," said Margo Johnson, a registered nurse in the field of organ transplantation. "But I know it's an option that we will not be able to offer in the near future for girls.

So for the moment they place their money in a savings account for girls, although Johnson said she is aware of the tax advantages provided by a plan of 529 college savings offered by Florida and of other states.

Dental Equipment Vendor Kai Cox, St. Petersburg, said he was "really a kind of blown away by the" cost when he checked the price paid in advance in Florida last week.

Cox, 32, was already leaning more towards investing in a savings plan 529 studies of its 15 month old son, Finnegan. But he recognizes the appeal of using a prepaid plan to lock in the cost of educating a child and said: "Even 20-Grand, over four years is still a hell of a good deal for university. "

But he said this year's dramatic increase in prices paid in advance are "unfortunate for people who can not afford to pay the difference."

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