Florida Governor Ron DeSantis announced last month that the Florida Prepaid College Board would lower its college-prepaid prices by $1.3 billion, with remaining plans having lower monthly payments.
Florida Prepaid calls itself the “largest running and most successful prepaid plan,” assisting with the high cost of college before students actually attend a higher education institution.
The price reduction for prepaid plans will benefit more than 224,000 current customers.
“My godfather started Florida Prepaid for me when I was born. He told me that was the best decision he’s ever made,” said Joshua Greene, a student-athlete at Bethune Cookman University.
At the news conference to announce the changes for Florida resident, Florida Prepaid College Board Chairman John Rood and members of the board joined DeSantis.
“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,” DeSantis said. “I thank chairman Rood and the board for their wisdom and financial stewardship, without which these incredible savings would not be possible. This price reduction is great news for hardworking Florida families looking to invest in their children’s future.”
Plan holders cam expect to have a reduced payment, and they may be inclined to pay off the entire amount earlier than expected. Nearly half of the affected families will be receiving refunds totaling $500,000.
“More than 108,000 plans are now paid in full and can receive an average cash refund of $4,700. Plan holders also have the option to transfer their refund to a Florida Prepaid savings account for other college expenses like books, supplies and housing. Pricing for the upcoming 2020 plan year will have the lowest rate in five years, starting at $44 per month for a newborn,” DeSantis said in a release.
Florida Prepaid has helped many students pay for partial or full tuition and expenses. This is with and without financial aid.
“I do think it is beneficial because, whatever my financial aid doesn’t cover, Florida Pre-Paid pays the rest of it, whatever the amount. My mom told me my plan was paid off in five years and totaled around 7,000,” said Greene.
Tuition prices and the prepaid balances will now be able to balance out, according to DeSantis.