Update: P.A.C.T's financial future

Montgomery, Ala. (WSFA) -- The Retirement Systems of Alabama is investigating the state's Pre-paid Affordable Tuition Program's financial problems.  P.A.C.T. has lost about a half billion dollars, roughly half of its investments have been depleted due to the down economy.

RSA is looking at what can be done to help, and it looks like the answers are more money or limit on tuition increases.

Marc Reynolds with RSA says it would be a lot cheaper for pact to use RSA to manage its investments instead of paying $30 million a year to private investors.

"If the solution is to fund it and come up with some additional revenue and we manage it and invest it cheaper we'll be glad to do that," said Marc Reynolds.

RSA hopes to have its study completed by the end of July or the first of August. Then it will advise the legislature and Governor Bob Riley on how much money P.A.C.T. needs to pay out each year to stay afloat.

Students currently in P.A.C.T. are covered this fall.  New enrollment has been frozen.