BOCA RATON, FL (WFLX) - Parents may find it to be welcome news. Florida Prepaid College plans go on sale Wednesday, and it's considerably cheaper than it's been recently after prices increased rapidly for several years.
A variety of Florida Prepaid plans allow consumers to save with a monthly payment toward paying complete tuition by the time college begins.
The Florida Prepaid College Plan is guaranteed by the state of Florida. The child or the child's guardian must be a Florida resident to participate.
Consumers will see prices as much as 50 percent lower than recent years. A four-year university plan for a newborn was $350, but is now $173 each month. The price for a four-year plan at state colleges, or community colleges, is the same.
The price reduction is the result of a new state legislation that controls future costs at state-run universities in Florida.
Application fees have been waived for people who sign up by the end of 2014.
“This year's open-enrollment period is unlike any we have seen in recent years, and we encourage families to take advantage of these historically low prices,” said Florida Prepaid College Board Chairman Duane Ottenstroer. “The affordable prices and new plan options provide Florida families with more opportunities to save for their children's education. This is truly the best time to start saving.”
About 18,000 families who purchased plans from 2008 to 2014 with a "tuition differential fee" are receiving $200 million in refunds.