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Well, Well, Well, what is once again going on around here, in the Land Of Dixie. Now it seems the
State of Alabama's official College Fund program is going bust.  

MONTGOMERY, Ala. (AP) - Alabama's prepaid college tuition
program is scrambling to figure out how to keep paying students'
tuition now that its investments are tumbling and its tuition costs
are rising.
State Treasurer Kay Ivey sent a letter to the 48,000
participants over the weekend to warn them of the financial
dilemma, but so far, talks with college officials have produced no
solution.
The Prepaid Affordable College Tuition Program has seen its investments lose 45 percent of their value since September 2007. At the same time, college tuition costs are rising faster than the
program anticipated.
The publisher of a financial aid Web site, Mark Kantrowitz, says
some other states are dealing with the same problem, but no state
has missed making tuition payments.

It gets better, follow me below the fold:

Most of these pre-paid programs have insurance, or some sort of guarantee if the fund dries up.
But not the program in Alabama.  Once you purchase this particular program your money is gone.
Gone to your child's education supposedly.

But if you read the fine print, it goes something like this: If the money runs out, then the fund cannot
guarantee your kid any college funds will be available. And no, don't ask for your money back, it
is gone. Didn't you know, this was sort of like gambling, you might win, and you might lose.

So the Alabama program is unique in the fact , that it offers no guarantees about your
child's future.  It is supposed to pay for 4 years of college at any certified State College
in Alabama, but since the fund looks like it is going dry, they just pretty much blew everyone
off who was signed up for this program.

Boy, were they pissed, and rightfully so, the State of Alabama takes your money for a guaranteed
College Program, and then when they lose all the money on Wall Street, they tell the parents,
too bad, there was no insurance, or anything to protect their investment in their children's
futures.

Sounds like the State of Alabama got some good scam going, that's for sure.  Let's see, you
the hard working, thoughtful parent put in over $20.000 for your kids education. To the
very State where you live and work. One morning you wake up to find the State of Alabama
fucked up your kids College Savings and it is all gone, and tough shit to you. You should
of read the fine print, the part that says NO GUARANTEE'S.

How is this even legal, oh I forgot, States can do whatever they want. NOT!

Here is the link to the Alabama's sales pitch for PACT, their wonderful education
program for college.  Looks like the main page has moved, so I don't know
what you will find, but they sure were throwing a fit in Montgomery, Alabama
on Friday.

Originally posted to sharistuff on Sat Mar 07, 2009 at 08:12 AM PST.

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