Montgomery, AL – Administrators of Alabama's prepaid college tuition plan say it can't pay tuition after the fall semester of 2011 and still have enough money to provide refunds to the 44,000 participants.
Assistant Treasurer Daria Story and program administrator Brenda Emfinger said it takes $70 million to $80 million annually for tuition. After the fall semester of 2011, the program will be down to about $350 million, which is the amount needed to refund the money that participants paid into the program.
Emfinger and Story said that shows the need for the Legislature to address the program's problems in the current session. The Senate and House have passed separate bills to shore up the program with $236 million, but they can't agree on whether to include a cap on tuition increases.
(Copyright 2010 by The Associated Press. All Rights Reserved.)