Florida Prepaid to have the ‘lowest’ rates in years. What it means for new, current customers
Florida Prepaid College tuition plans are getting a $1.3 billion price cut — and thousands of customers will be receiving a hefty refund, Gov. Ron DeSantis announced Monday.
New customers will also see the “lowest” prepaid plan prices in the past five years, according to the Florida Prepaid College Board.
“My administration has been committed to holding the line on the increasing cost of higher education, and as a result, we are starting to see tuition rates level out,” said DeSantis in a statement. “This price reduction is great news for hardworking Florida families looking to invest in their children’s future.”
The news brought an influx of visitors to Florida’s Prepaid’s website, possibly causing slowdowns for some users. Florida’s Prepaid’s website was even recommending visitors “try again later” because of the “unusually high traffic” Monday afternoon.
The price cut comes from the state having “lower than anticipated tuition increases and fee inflation,” according to the board.
The board says 224,000 existing customers who purchased a plan starting in 2008 and whose student will enroll in college in 2020 or later will benefit from lower monthly payments, with nearly half of them expected to receive refunds.
More than 108,000 plans are “now paid in-full” with the price reduction, with those customers expecting to receive an average cash refund of $4,700, according to the board. It expects to refund more than $500 million in total.
“Our goal has always been to empower and support Florida families by making college savings simple and affordable,” said Board Chairman John D. Rood. “The price reduction reflects our unwavering commitment to that objective. We commend Governor Ron DeSantis and the Florida Legislature for their continued efforts to make a college education affordable for Florida students and families.”
‘Lowest’ Florida Prepaid rates in years
Starting Feb. 1 through April 30, prepaid college plans will start at $44 per month for a one-year Florida University Plan for a newborn compared to 2019’s $47 per month for a one-year Florida University Plan for newborns.
The most savings are in the four-year Florida University plan, which is listed as the most popular option on the website. The plan originally cost $186 a month for a newborn in 2019, with a total lump sum payment of $29,473. Now in 2020 with the new price cut, a family who purchases the plan for a newborn can expect to pay $177 a month.
That means you’ll pay a total lump sum of $27,999 instead of $29,473. That’s a $1,474 difference.
New plan holders can also use the promo code “EARLY50” through Feb. 29 to enroll in a prepaid plan for free, which the board says is a $50 savings.
These are the ‘lowest’ prepaid rates Florida has seen in the past five years, according to the board.
Every prepaid plan is guaranteed by the state and is meant to help make higher education more affordable for families by locking in the price of tuition from the year the plan was purchased.
The student will then have up to 10 years after high school graduation to use it either in-state or out-of-state.
Account owners who are eligible to receive a refund or a reduced price plan will be notified by the end of the month. They will also have the option to transfer their refund to a Florida Prepaid savings account for other college expenses such as books, supplies and housing.
The state’s University Dormitory Plans will not be affected by the price reductions.
Those interested in learning more about how their plans will be affected or to get a plan estimate for their child can visit myfloridaprepaid.com/lowprices and myfloridaprepaid.com/prepaid-plans/plans-and-pricing/
This story was originally published January 13, 2020 at 1:44 PM.
