MONTGOMERY, AL (WSFA) - Alabama State Treasurer Young Boozer confirmed Wednesday that there will be an eight percent increase paid by the state for tuition and fees as part of the Alabama Prepaid Affordable College Tuition Program, or PACT.
The increase will become effective in time for the fall 2017 semester.
Boozer, who is also the PACT board chair, is required within the organization to pay tuition and qualified fees at a certain rate. PACT was first required to do this starting in 2013 under an agreement reached in a class action settlement. The settlement allows for appropriate increases in benefit payments.
The first payment increase was three percent in 2015, then six percent in 2016.
"The settlement agreement was designed to stabilize a financially struggling program to preserve substantial value and to protect the program with a long-term financial plan given the fiscal constraints on the program," Boozer said. "We are proud to be able to provide the third consecutive increase in benefit payments."
According to PACT, there are currently 20,714 active contracts in the program.