Editorial: PACT Problem - WSFA.com Montgomery Alabama news.

Editorial: PACT Problem

Posted: Updated:
  • EditorialsMore>>

  • Editorial: To DirecTV subscribers

    Editorial: To DirecTV subscribers

    Monday, September 1 2014 9:30 PM EDT2014-09-02 01:30:18 GMT
    I would like to take a moment to address our viewers who watch us through the DirecTV system. After midnight on Aug. 31, our signal was removed from the DirecTV system due to a lack of an agreement betweenMore >>
    I would like to take a moment to address our viewers who watch us through the DirecTV system.More >>
  • Editorial: "Avoidable"

    Editorial: "Avoidable"

    Thursday, August 28 2014 7:20 PM EDT2014-08-28 23:20:08 GMT
    Earlier this week a child was critically injured after being struck by a vehicle at a busy intersection here in Montgomery. Reports are this child was attempting to cross four lanes of traffic after beingMore >>
    Earlier this week a child was critically injured after being struck by a vehicle at a busy intersection here in Montgomery. Reports are this child was attempting to cross four lanes of traffic after beingMore >>
  • Editorial: "Viewer Feedback: "Disgrace"

    Editorial: "Viewer Feedback: "Disgrace"

    Tuesday, August 26 2014 7:20 PM EDT2014-08-26 23:20:07 GMT
    Our editorial last week focusing on the breakdowns at the Central Alabama Veterans Health Care System lead to the following feedback on wsfa.com and our WSFA 12 News station Facebook page…here is justMore >>
    Our editorial last week focusing on the breakdowns at the Central Alabama Veterans Health Care System lead to the following feedback on wsfa.com and our WSFA 12 News station Facebook page…here is just a sampling:More >>
MONTGOMERY, AL (WSFA) -

Most would agree that prepaid college programs are a good idea.  Lock in college tuition at current rates and when you head off to college your costs are covered at future rates.

Unfortunately approximately 30,000 individuals representing 40,000 separate Alabama PACT contracts are in a tough spot right now as the program will not have enough money to cover full tuition at current and future costs.

2008 was a tough year on PACT as investments to fund the program dropped in value and costs for college rose.

A legal settlement has been put on hold by the Alabama Supreme Court that would have offered a solution to keeping PACT alive.   The solution came with a steep price tag of almost $5 million in legal fees and tuition being paid only at 2010 rates with parents paying the difference.

This is a bitter pill for those families now having to find ways to fund college.  The fact is a lot of things happened in the last 3 years that were unforeseen in the financial markets and we need to deal with the realities as best we can.  Good, bad or indifferent.

Behind door number 1 is a legal solution to keep PACT going and behind door number 2 is the program dissolving and participants getting their money back.   We would support opening door number 1.

We appreciate and encourage your feedback. 

Copyright 2011 WSFA 12 News. All rights reserved.

Powered by WorldNow