Alabama prepaid proposal would remove tuition guarantee
Instead of paying the promised full tuition benefits at any in-state Alabama public institution, PACT would limit fall 2010 benefits to the fall 2009 average tuition rate at in-state schools, leaving students at the highest-cost public universities to pay more of the cost themselves.
In each subsequent school year, benefits would not be tied to tuition increases but instead would be increased by 50% of the annualized total fund rate of return, if any, in the PACT program fund.
Several other changes were approved by the board. The board is also pushing for legislative changes that would provide the program with state funding.
The changes are proposed as a remedy to the PACT plan's deep fiscal woes that threaten the viability of the program.