Governor Charlie Crist and the Florida Prepaid College Board reminded families during College Savings Month this past September that Florida offers easy and smart ways to save for their children's college education.
"The earlier you start saving for college, the better," Governor Crist said in his
proclamation of September as College Savings Month in Florida. "A Florida Prepaid College Plan offers the simplicity and security of buying something today for a child's college education that will be worth more tomorrow."
Florida Prepaid College Plans includes two tax-free 529 plans - the Florida Prepaid College Plan and the Florida College Investment Plan*. Open enrollment to lock in this year's prices starts October 19, 2009.
The Florida Prepaid College Board encourages families to research their college savings options and wants to dispel a few common savings myths:
Myth: Having a tax-free 529 college savings plan will affect my child's eligibility to receive financial aid.
Fact: Financial aid eligibility is based primarily on family income, not on assets such as savings.
Myth: If our family leaves Florida, then the money in a Florida college savings plan can't be used at colleges in other states.
Fact: The full value of a Florida Prepaid College Plan, what would be paid to a Florida public university or college, can be transferred to most out-of-state or private colleges. A Florida College Investment Plan can be used to cover any qualified higher education costs at all eligible public or private universities, community colleges or technical schools anywhere in the country.
Myth: If my child receives a Florida Bright Futures Scholarship, it would be a waste of money to have purchased one of the Florida Prepaid College Plans.
Fact: Starting in the fall of 2009, Bright Futures is now a flat award that doesn't cover the full cost of tuition. Most students who have both a Prepaid College Plan and Bright Futures are able to more fully cover the full costs of college, because the two can be used together. In addition, all students are not academically eligible for Bright Futures, and they must maintain a certain GPA in college to keep the scholarship.
Myth: I lose control over the assets in my Florida Prepaid College Plans if my child does not attend college.
Fact: If the beneficiary of either the Prepaid College Plan or College Investment Plan decides not to attend college, the plan may be transferred to another member of the beneficiary's family. Families may also elect to receive a refund.
Myth: There's no need to purchase a 529 college savings plan, since my family could just save monthly for college education without one.
Fact: Under the Federal Internal Revenue code, 529 plans, like Florida's Prepaid College Plan and the College Investment Plan are tax-free as long as the money is spent on college-related costs. Additionally, the Florida Prepaid College Plan is financially guaranteed by the State of Florida§, so you don't have to worry about monitoring plans and the State guarantees plans will cover all promised tuition, housing or fees at the time a student attends college.