Prepaid Affordable College Tuition plan

BOC / Alabama State Treasury

Parents with children in Alabama's prepaid college tuition program are frustrated that they can't plan for the future while the Alabama Supreme Court decides how much tuition the program will pay.

Parents told the program's board chairman Wednesday that they are looking at coming up with $600 to $700 per semester if the Supreme Court allows the program to pay tuition at 2010 levels rather than current levels. They also said they are worried that the program will close down if the court requires current tuition. The board is paying the current tuition while it awaits a ruling.

BOC / Alabama State Treasury

The legal battle over Alabama's financially troubled prepaid college tuition program is headed back to the Alabama Supreme Court. A Montgomery judge ruled Monday that a law passed by the Legislature in the spring to permit reduced tuition payments is constitutional. The state Supreme Court had asked Circuit Judge Johnny Hardwick to review the law before the high court considers it. If the Supreme Court agrees with Hardwick, then the Prepaid Affordable College Tuition Plan will be able to pay reduced rates rather than full tuition.

Judge To Rule Later On Ala. Prepaid Tuition Plan

Aug 27, 2012
Tax Credits / Flickr

A judge says he will rule later on whether a new law can be applied retroactively to Alabama's prepaid college tuition plan. Montgomery County Circuit Judge Johnny Hardwick heard arguments from both sides Monday and took the case under advisement. At issue is a settlement the board of the Prepaid Affordable College Tuition plan reached with many participants to pay less than full tuition because of the plan's financial problems. The Alabama Supreme Court ruled in March that the settlement violated state law. The Legislature revised the law in April.

Alabama court reconsiders prepaid tuition ruling

Jul 11, 2012
BOC / Alabama State Treasury

The Alabama Supreme Court has reopened a lawsuit over whether Alabama's prepaid college tuition program can pay less than full tuition for students.

The Supreme Court on Wednesday told a lower court to look at whether state officials can retroactively apply a new law passed by the Legislature to allow reduced tuition payments. A plan to provide reduced payments was struck down by the Supreme Court in March and then the Legislature passed a law in April to try to save it.