"State-run trust funds for parents who want to pay off college tuition before their children enroll are running short on cash, and program officials worry they won't be able to pay for students who are counting on the money," the Associated Press reports. "The rising cost of college and plunging stock market have combined to create a disparity between what some of the 18 states' prepaid tuition plans have on the books and what they're supposed to pay. The worst case is in Alabama, where the sour economy has sliced off nearly half of the fund's assets, and state officials are telling parents the full cost of college isn't a sure thing."

You can read the complete March 11, 2009 Associated Press article on-line.

Additional Media Coverage

Volatility Hits Prepaid 529s The Wall Street Journal

Market crisis thwarts prepaid college tuition plans Houston Chronicle

Parents Reconsider 529s Forbes

State's College Savings Fund Suffer Losses Maine Public Broadcast Network

Posting of "Financial Aid in the News" does not imply endorsement or support by NASFAA. If you attempt to access an article and receive a "not found" message, it is likely that the article has been removed from the site. Posted 03/11/09 to www.NASFAA.org. Please submit Web Site questions or comments to Web@NASFAA.org.