Treasurer Says PACT Will Work With Withdrawals

MONTGOMERY, Ala. (AP) — State Treasurer Young Boozer says a proposed settlement for Alabama's Prepaid Affordable College Tuition plan will work even if many families with young children pull out their money.
The financially troubled program has proposed settling litigation by providing benefits for all participants at the state university tuition level of fall 2010. Boozer says it's still a great deal for parents with children in high school. He says those with young children will have to evaluate whether to stay in or pull out their money and invest it elsewhere.
He says parents paid $24,611 to enroll a 5-year-old in 2008. The proposed settlement calls for that child to get $35,550 in tuition payments if they choose Alabama or Auburn, which are the two most popular universities for PACT students.