Everyone knows the old saying, but in this economic climate, that is becoming more and more evident. For years PACT programs have been very popular choice in a way to fund a child’s education. They terms are fairly simple, you pay for a child’s education now, for the full price of what the tuition costs are today, and when they are eligible for college, their tuition is already paid. Sounds simple enough, but someone forgot to tell colleges and the economy.
Colleges have raised tuition at rates much higher than expected, and the economic downturn has caused these investments to lose almost half of their original investment. Now people are wondering if their child’s education is going to be paid for, and whether they need to start saving again.
Hopefully the Alabama legislature will try to find some creative solutions to these problems, but at this point there a lot of people re-thinking the manner in which their children’s college will be funded. If you have purchased one of these PACT education plans, it is time to educate yourself as to whether your children’s college is properly funded.