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”
Top Posts & Pages
- A BIG CHANGE: New mortgage rules seen bringing increase in pricey mobile home loans
- Analyst: KiOR Columbus plant may end up sold as scrap
- Warden who lives hundreds of miles from jail resigns
- DAVID DALLAS: Savor this Thanksgiving and be grateful
- Jail kitchen supervisor pleads guilty to stealing food
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- WILLOUGHBY: Bernie Reed cites hard work as key to success of Reed’s Metals
- (UPDATE) Gov. Bryant: $1.2 billion aluminum plant is a very exciting proposition for the state of Mississippi
- Hunting-weapons legislation passes House