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Florida prepaid offers savings

October 15, 2014
/ Reggie Dogan
/ education

It’s never too late — or early — to start saving for college. A new campaign to encourage more families to take advantage of the Florida’s college savings plans started today. The Florida Prepaid College Board’s “Starting is Believing” campaign offers a new open enrollment period to encourage more families to participate in the what’s called the most affordable Florida prepaid college plans since 2007. Costs of the popular Prepaid Plans are up to 50 percent lower than last year and the new 1-Year Florida University Plan starts at $43 a month. All Prepaid Plans now start at less than $175 a month, including two that start for less than $50 a month. Florida Prepaid is also waiving the application fee for newly opened plans through Dec. 31. That means new customers will save $50, and existing customers who open an additional plan will save $10. The first payment won’t be due until April 20, 2015. The price cuts is the first ever in the history of the college savings plan. They are the result of a new state law that helps control future costs at state universities. This year, families will be able to buy a 4-Year Florida University Plan without any change in plan coverage for as low as $173 a month, or a 2 + 2 Florida Plan for as low as $136 a month. The new prices are available through Feb. 28, 2015. For the first time, a 1-Year Florida University Plan will be offered that allows families to buy up to four years at a state university in one-year increments. The 1-Year Florida University Plan starts as low as $3 per month and covers 30 credit hours. “This year’s open enrollment period is unlike any we have seen in recent years, and we encourage families to take advantage of these historically low prices,” said board chairman Duane Ottenstoer. “The affordable prices and new plan options provide Florida families with more opportunities to save for their children’s education.” Studies show that students with even moderate college savings are more likely to attend college and graduate. Children from minority or low-income families with as little as $500 in savings for college are still three times more likely to attend school and four times more likely to graduate than their peers, according to a 2013 report from the Assets and Education Initiative at the University of Kansas. While designed for use at a Florida college or university, the amount covered by the plan can be applied to schools nationwide, as well as technical or private schools. Prepaid Plans can be used with any scholarships to cover costs as well as other tuition and fees. If the scholarship covers all costs, families can get a refund equal to what would have been paid to the school or transfer their plan to another family member. Families can pick one of five Prepaid Plans, including the new 1-Year Florida University Plan. All will cover tuition and most mandatory fees at one of Florida’s 12 universities and 28 colleges. To qualify for a plan, a child or the parent or guardian must be a Florida resident. Parents, grandparents and friends also can purchase a plan. Prepaid Plan options include:

2-Year Florida College Plan: Covers tuition and most fees for 60 credit hours at a Florida college.
4-Year Florida College Plan: Covers tuition and most fees for 120 credit hours at a Florida college.
2 + 2 Florida Plan: Covers tuition and most fees for 60 credit hours at a Florida college and for 60 credit hours at a state university.
1-Year Florida University Plan: Covers tuition and most fees for 30 credit hours at a state university.
4-Year Florida University Plan: Covers tuition and most fees for 120 credit hours at a state university.

For more information on plan options and prices, or to purchase a plan, visit www.myfloridaprepaid.com.Customer service hours will be extended during open enrollment, from 8 a.m. to 8 p.m., Monday through Friday and 10 a.m. to 2 p.m. on Saturday. Representatives can thcan be reached at 800-552-4723.

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Florida prepaid offers savings

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