Supreme Court voids Ala. PACT settlement - Montgomery Alabama news.

Supreme Court voids Ala. PACT settlement

The Alabama Supreme Court has tossed out the settlement over Alabama's financially troubled Prepaid Affordable College Tuition plan.

The court issued a 6-1 decision Friday saying the settlement approved by a Montgomery County judge is void because it conflicts with state law.

The majority said the Legislature provided extra funding to PACT in 2010 to make tuition payments fully funded and not violate the contract relationship between the PACT board and PACT contract holders.

The Supreme Court said the settlement violates that because it calls for PACT to pay tuition at 2010 levels and for the students' families to make up the difference.

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