Change Florida College Prepaid Program

Change Florida College Prepaid Program

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Chad Stroup started this petition to Florida Governor and

There is a serious problem with the Florida Prepaid College Program.   In many cases Parents like myself have lost money by investing in the 4 year College Prepaid Program and don’t find out until many years later when they go to withdraw their funds.  Supposedly the Board, made up of prior Chancellors, CFO’s and Analytical Experts predict the future cost of college tuition in Florida and then setup plans for Parents to prepay those cost thus while charging interest. 

If the Boards predicted future cost is more than or equal to the actual cost then the consumer loses any opportunity to make interest on their investment.  In our case and any others that bought into the plan in 2003, the plan was worth less than what we put into it.  So for 18 years in the program, my tuition payout was $500 less than my initial investment. 

The Prepaid Institution will lose money if they under forecast the cost of tuition, that is a fact.  So there has to be an inherent bias to over forecast and in my mind that is a conflict of interest.  Secondly, I bet the Institution reforecast tuition rates to know if they are projected to make or lose money.  They would have to in order to set rates accordingly for the next set of investors.

I propose the Florida Prepaid Program publish annual numbers on the projected rate of return based on their future forecast.  They should also publish Forecast Accuracy reports so future investors have an opportunity to see fund performance prior to making a large investment over many years.

The 529 Plans publish rate of returns so let’s insist the Prepaid Program does the same.  Had I know my rate of return was negative, I would have cancelled my plan many years ago and reinvested in a positive return fund.

0 have signed. Let’s get to 100!
At 100 signatures, this petition is more likely to be featured in recommendations!