Montgomery, AL – State Treasurer Kay Ivey is urging parents not to pull their money out of Alabama's prepaid college tuition plan before its board meets March 24. That's when the board will consider its options for coping with plunging assets.
Ivey said Friday that parents who pull out of the program could face tax consequences because of the tax breaks that come with participation in the program.
The Prepaid Affordable College Tuition Plan has nearly 49,000 participants, with about 12,000 of them currently in college. The program's assets have plunged by 45 percent since September 2007 due to the downturn in the economy. Liabilities now far exceed assets.
Ivey said the plan's board will hold a hearing March 12 in Montgomery to gather parents' comments about what should be done.
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