Central and Eastern Kentucky
(2009-10-28)
BOWLING GREEN
(Kentucky Public Radio) -
In the last two decades, families around the country have invested in state funds that pledge to cover the cost of attending college, regardless of how much tuition increases. The so-called 529 funds allow parents to pay future tuition costs at today's lower prices. But now, most state-run programs are in the red.
18 states, including Kentucky, offer families the chance to pay current tuition costs for college in the future. Jo Carol Ellis is with the Kentucky Higher Education Assistance Authority. She says a combination of factors have many prepaid college tuition programs facing deficits.
Kentucky has closed its prepaid tuition program to new applicants since 2004. It has an actuarial deficit of 59 million dollars, though officials say the fund, as it is today, is solvent.
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