Fitch suspends state’s prepaid college tuition program
Published: September 19,2012
JACKSON — State Treasurer Lynn Fitch has told lawmakers that she suspended the state’s prepaid college tuition program because it is struggling financially and an audit will show whether it needs to be overhauled or scrapped, as many other states with similar programs have done.
Fitch appeared yesterday before the Joint Legislative Budget Committee.
Until the audit is completed, Fitch says the Mississippi Prepaid Affordable College Tuition program will not enroll any new participants.
Fitch said MPACT, which has 22,293 families enrolled, is only 76.8 percent funded, leaving a $94 million shortfall. She said investment earnings last year were only 0.6 percent.
Actuaries say it must earn 7.8 percent a year to stay in the black, with college tuition increasing about 7 percent a year.
To sign up for Mississippi Business Daily Updates, click here.
2 Responses to “Fitch suspends state’s prepaid college tuition program”
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Canadian company purchasing Southern Lumber for nearly $50M
- Winchester lands $50M ammunition contract from Homeland Security
- Lawmakers question education leaders about escalating administrative costs
- Deer processors need to use caution to insure safe, tasty venison
- Peavey Electronics reorganizing under new globalization plan
- Pearl ordering rental properties to retrofit with sprinklers, build storm shelters
- C Spire completes acquisition of MegaGate Broadband
- Columbia Parachute expanding, relocating to BusinessPlex
- Tourism conference being held on Coast; industry to ask state for more money