Ala. Supreme Court upholds reduced rates for PACT
MONTGOMERY, Ala. (AP) — Alabama's highest court says the state's financially troubled prepaid college tuition program can pay participants reduced rates rather than full tuition.
In an opinion announced Friday, the Alabama Supreme Court affirmed a trial court ruling that a 2012 law permitting reduced tuition payments is constitutional, and can be applied to participants who entered the program years before the law passed.
Under the Prepaid Affordable College Tuition plan, or PACT, families could pay a fixed amount when a child was young. Upon graduation from high school, they'd receive four years of full tuition at a state university.
The program invested the payments and used the income to pay tuition without any problems for nearly two decades. But it faltered when stock values plunged in 2008.