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No More Interest For Leaving Ala. Tuition Plan

Montgomery, AL – People who withdraw their money from Alabama's prepaid college tuition plan will no longer be paid any interest.

The Legislative Council voted unanimously Wednesday to approve a rule change recommended by the new board overseeing Alabama's Prepaid Affordable College Tuition plan. Participants previously got 1 percent interest if they withdrew their money, but the new no-interest rule goes into effect immediately.

State Treasurer Kay Ivey, who oversees the program, says the change is to keep as much money as possible in the PACT plan now that the Legislature has allocated $548 million to secure its future.

Another rule change approved Wednesday provides that a PACT contract expires when a student graduates, even if the student has more hours of class available on the contract.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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