Florida Prepaid College Plan??

[wfloyd]

We bought the plan for DS. We got the tuition and fees part but opted not to get the dorm plan. That seemed to be too restrictive and not as beneficial for us. We also are doing the 55 payment option and in another 3 years or so it will be paid off.

 

[chrissyk]

We bought the plan for DS. We got the tuition and fees part but opted not to get the dorm plan. That seemed to be too restrictive and not as beneficial for us. We also are doing the 55 payment option and in another 3 years or so it will be paid off.

I'm unsure about the dorm plan as well. It definitely says that only some of the dorms participate. I'd hate to box my future child into living in one dorm while his/her friends move elsewhere or live off campus. I was thinking of buying 2 years of the dorm plan, or even just 1 year (since I figure that s/he'll live on campus for the freshman year at least).

 

[Lisa loves Pooh]

Our kids are not in college for another 12-14 years...but we like having it.

We like that the current tuition at that time would be applied to an out of state or private school if that is where they chose to go--and that we would get "reimbursed" at current rates should they have a scholarship.

We are doing tuition only b/c we don't have enough money to set up the entire thing.

At least for tuition--I disagree with choosing alternate investments b/c of the skyrocketing cost of tuition.

If your child doesn't use it for whatever reason---I believe the fund can transfer to other familiy members in the event it isn't used.

Also--you must be careful when setting up accounts with your children. Set up a certain way--when your child is of age...THEY determine how that money is spent. Legally--you wouldn't be able to say it can only be used for college. So they may be in hot water with you--but if they want to buy a new car with it, they are legally entitled. I would hate that our hard earned money for my child's future was used on a car instead of school while they choose to work at McD's.

Forgive me for not knowing the legalities of the different accounts and how to set them up--just ask and your financial advisor/bank can guide you.

With the pre-pay--I believe the parent (or whomever set up the account) "owns" the account. And should you decide to cash out---instead of use it for education....then you get only what the plan amount was at the time you signed up. The only time you get the "future" amount is for things like a scholarship.

 

[Lisa loves Pooh]

I'm unsure about the dorm plan as well. It definitely says that only some of the dorms participate. I'd hate to box my future child into living in one dorm while his/her friends move elsewhere or live off campus. I was thinking of buying 2 years of the dorm plan, or even just 1 year (since I figure that s/he'll live on campus for the freshman year at least).

I believe if they choose a school without a dorm--or the dorms are full and student is turned away--you get the adjusted amount for the state avg cost of dorms that year refunded...and then that can be used towards off campus accomodations.

 

[lillygator]

we purchased the 4 yr university tuition for dd #1 (5 year plan) and plan on purchasing it for dd #2 next year....

 

[chrissyk]

I believe if they choose a school without a dorm--or the dorms are full and student is turned away--you get the adjusted amount for the state avg cost of dorms that year refunded...and then that can be used towards off campus accomodations.

This is true, but those are the only ways that it gets refunded. If there is dorm space in an "approved" dorm, then that is where the kid would be slotted to live (that's how I read it at least). What if your child wants to move into the frat house as a Jr., or wants to move off-campus with friends when there are dorm slots available? I was leaning towards doing just 1 year of the dorms, but DH thinks that 2 makes more sense.

As for your getting the refund if your child gets a scholarship...I believe that the STUDENT gets the refund. That appeared to be the case if the child got a Bright Futures scholarship and already had the prepaid plan at least. Either way, how cool is that?! If the student gets the cash, talk about a great incentive to work to keep the Bright Futures scholarship

 

[Lisa loves Pooh]

This is true, but those are the only ways that it gets refunded. If there is dorm space in an "approved" dorm, then that is where the kid would be slotted to live (that's how I read it at least). What if your child wants to move into the frat house as a Jr., or wants to move off-campus with friends when there are dorm slots available? I was leaning towards doing just 1 year of the dorms, but DH thinks that 2 makes more sense.

As for your getting the refund if your child gets a scholarship...I believe that the STUDENT gets the refund. That appeared to be the case if the child got a Bright Futures scholarship and already had the prepaid plan at least. Either way, how cool is that?! If the student gets the cash, talk about a great incentive to work to keep the Bright Futures scholarship

I agree--we don't have the dorm plan for those reasons---but the parent isn't required to send the child to just those schools with an "approved" dorm.

For the scholarship--it is the account owner who determines what happens with the money. They can choose to do as you described...or do something else.

The account owner may use the Florida Prepaid College Plan benefits as originally planned. The college or university will issue a check to the student for the scholarship. These funds may then be used by the student to offset expenses that are not covered by the prepaid contract.

The account owner may transfer the contract to brother, sister or first cousin of the original beneficiary, or to a grandchild of the account owner. Click here to view the Beneficiary Change Form.

The account owner may request a scholarship refund and receive an amount equal to the current rates for state university fees paid on a semester-by-semester basis. Click here to view the Scholarship Refund Form.

Yes it is a great incentive. But the account is owned by whoever purchased it and not the beneficiary. Hence my earlier post about being careful how you set up investments and savings.

 

[chrissyk]

Yes it is a great incentive. But the account is owned by whoever purchased it and not the beneficiary. Hence my earlier post about being careful how you set up investments and savings.

Aha! I see what you mean now. You can essentially reappropriate those funds if your child gets a Bright Futures (or other) scholarship. I didn't realize that. Well, that's cool too. I was hoping that my child could just save the windfall for grad. school if s/he got a Bright Futures scholarship to boot, but then again, s/he could spend it all too! I guess that I'd be reappropriating the original prepaid plan in that case.

 

[Lisa loves Pooh]

Aha! I see what you mean now. You can essentially reappropriate those funds if your child gets a Bright Futures (or other) scholarship. I didn't realize that. Well, that's cool too. I was hoping that my child could just save the windfall for grad. school if s/he got a Bright Futures scholarship to boot, but then again, s/he could spend it all too! I guess that I'd be reappropriating the original prepaid plan in that case.

Now there's nothing that says mom and dad can't encourage their child to do well--and if they get a scholarship...they would be rewarded.

My friend in HS, if she got a full scholarship--she'd get a new car. Well, she was a National Merit Finalist and got a full ride. She was very happy with her new car .

 

[cruisnfamily]

Aha! I see what you mean now. You can essentially reappropriate those funds if your child gets a Bright Futures (or other) scholarship. I didn't realize that. Well, that's cool too. I was hoping that my child could just save the windfall for grad. school if s/he got a Bright Futures scholarship to boot, but then again, s/he could spend it all too! I guess that I'd be reappropriating the original prepaid plan in that case.

My plan is (assuming my kids get the bright futures)...to have the check sent to me each semester and I will use it towards their food/housing/local fees. We bought the tuition only plan which certainly won't cover all expenses but between the bright futures and the prepaid, we should at least have a chunk of it covered.

I can't see there being any "extra" money that I could give to the kids or save for the future, I assume it will all be eaten up by college expenses.

 

[wfloyd]

As for your getting the refund if your child gets a scholarship...I believe that the STUDENT gets the refund. That appeared to be the case if the child got a Bright Futures scholarship and already had the prepaid plan at least.

Although if the student does get the money, they could be coerced to give it back to the parents. For example: pay up now or you won't get any more for the semester/year.

Most kids I knew getting the bigger scholarships would also be willing to refund the money to the parents in most cases anyway.

 

[Lisa loves Pooh]

Although if the student does get the money, they could be coerced to give it back to the parents. For example: pay up now or you won't get any more for the semester/year.

Most kids I knew getting the bigger scholarships would also be willing to refund the money to the parents in most cases anyway.

As I posted--there is none of that. It is the parents (or account owners) money and it is they alone who determine its destiny.

The money doesn't ever have to see the students bank account.

Please double check the facts here:
http://www.florida529plans.com/Prepaid/FAQs/schol.html

 

[chrissyk]

Although if the student does get the money, they could be coerced to give it back to the parents. For example: pay up now or you won't get any more for the semester/year.

Most kids I knew getting the bigger scholarships would also be willing to refund the money to the parents in most cases anyway.

They could be coerced that way, but only if the parents were reappropriating the original prepaid money. Either way, it would work out the same because the parents would get the money.

The way I see it, it's my responsibility to pay for my child's undergrad degree. If they do well and get a scholarship, then they should reap the rewards of that scholarship Otherwise, where is the incentive to hang onto the Bright Futures award from year to year (you have to keep up your GPA)?

 

[Lisa loves Pooh]

Chrissy--my incentive: no loans or less loans and not having to have a job....doing extra-curriculars such as sorority, et cetera. With our kids--it might be a better spending allowance--though I'm hoping to soften my hubby on a car as he thinks kids don't need it b/c they can just ride with friends. To which I kindly point out--that somehow these kids got a car--they just don't have magical powers .

And more on the dorms--depends on the college...but some somewhere do allow some fraternal/sorority housing to be covered:

The dormitory plan covers the cost of a standard, double-occupancy, air-conditioned dormitory bed space. The value of the dormitory plan at the time of college enrollment may be applied toward the cost of other housing managed or designated by the college, including some fraternity and sorority housing. Some colleges may allow you to request a dormitory not on this list. However, you will have to pay any difference between the cost covered by the plan and the cost of the dormitory you select. Each university sets its own policy. For more information, contact the housing office at the selected college.

(emphasis added)

 

[chrissyk]

Chrissy--my incentive: no loans or less loans and not having to have a job....doing extra-curriculars such as sorority, et cetera. With our kids--it might be a better spending allowance--though I'm hoping to soften my hubby on a car as he thinks kids don't need it b/c they can just ride with friends. To which I kindly point out--that somehow these kids got a car--they just don't have magical powers .

And more on the dorms--depends on the college...but some somewhere do allow some fraternal/sorority housing to be covered:

(emphasis added)

I agree with you about the car. My parents wouldn't let me buy/have a car while I was in college. They are very controlling and tried to tell me that I had no right to have one AFTER college either (and I was going to get to work how?!). Anyways, I got the heck out of there, bought a car, and never looked back. I feel strongly that kids need to have their own independence (in the form of a car that they pay for and pay the insurance on), especially when they are in college!! Now if they go to college in Orlando, that might be another story. We seem to see an accident happen there every time we're in the area

That is interesting about the fraternity/sorority housing (not that I'm dying for my future kid to go Greek, LOL!). If they wanted to, I'd want to make sure that they could live in the sorority/fraternity house though.

 

[wdw4us2]

We have 4 year university plans for both DD and DS which we bought when they were 3 and 4 months old. They are now 14 and 11 years old and we paid their contracts off when they were 5. We also have a separate investment account to cover the other expenses.

My niece had a 4 year university plan, Bright Futures and was a National Merit Scholar. She graduated from New College in May of 2004. They pooled all the funds into one account which she could use for tuition, books, housing, lab costs, etc. She said each college handles the funds differently. At any rate, her undergraduate education was completely paid for.

Everyone I know who has used the Florida Plan has said they don't know how they would have been able to go to school without it, even with Bright Futures. So, I would recommend it if you can swing it.

 

[chele3796]

I'm coming to this thread late, but if you have more questions I'd be happy to help. I am in Student Services at a Florida university and I have many students who have prepaid and bright futures. Florida Prepaid is incredibly easy to use. It is also helpful because students use it to pay for summer classes which are not covered by bright futures.

Michele

 

[BuckNaked]

We bought the pre-paid tuition packages in Alabama (PACT) for both of the kids, so we know that at least part of their tuition will be paid for. We also had UTMA accounts for both of them, but stopped contributing to those a couple of years ago and switched over to 529 plans instead.

 

[cruisnfamily]

I'm coming to this thread late, but if you have more questions I'd be happy to help. I am in Student Services at a Florida university and I have many students who have prepaid and bright futures. Florida Prepaid is incredibly easy to use. It is also helpful because students use it to pay for summer classes which are not covered by bright futures.

Michele

I'm the OP. I was just looking for feedback on how easy it was to use once college time rolled around....and if anybody had found any negatives to it so far.

In your opinion, would the "local fees" plan be beneficial? We've done tuition only and are continuing to save on our own for additional expenses. I'd like to add the local fees plan too but at this point I can't swing it financially. We're paying in full for DD12 and doing the 55 months plan with DS which we're paying 1/2 up front and making payments on the rest.

The bright futures is something I don't want to count on(who knows if it will still be there when my kids are ready? Who knows if their grades will qualify them for it? Etc, etc).....but I sure am keeping my fingers crossed in hopes of it.

I stated already on this thread, friends of ours did prepaid tuition only and then their dd got bright futures and between the two, they said the cost was so minimal they hardly had to lay out anything. I'm hoping that's the case with us but we'll see.

Also, dorms are expensive....and I don't believe the dorm plans even cover food which would be an additional expense.....I don't know if we'll be completely prepared but at least we'll have a chunk of money ready.

So, no specific questions, just interested in everybody's ramblings and opinions on the subject.

Thanks all! Keep it coming!

 

[chele3796]

The local fees are what is likely to go up the least percentage-wise if past history is any indication. They include things like activities & services, parking, technology and health center. Right now they are hovering at $20-$30 per credit hour depending on the institution. I am expecting a reasonably steep rise in tuition over the next ten years because FL public universities are some of the cheapest in the country and the class size amendment and the pre-k amendment are going to cost a lot of money.