This post is sponsored by the Florida Prepaid College Board, through my role as a Believer
Blogger. All thoughts are my own.
One of the many things that make the list of worries for new parents is how in the world will they make college dreams happen?
Raising a child is expensive and there are expenses you don’t even consider until you are right on top of them – sports fees, school pictures, field trips, homecoming dances, proms, spring break, and so many others.
While you can’t plan for every expense and come out ahead, college tuition IS one expense that you can plan for and save for effectively.
Many parents open a simple savings account and make contributions until high school graduation, or they might offer to cover the cost of various fees and books. These savings are a great start to an education fund, but one thing not considered is that the cost of tuition, books and other fees constantly change – with the trend being more and more expensive.
One smart way to avoid the increasing cost of tuition is to consider a prepaid plan. The problem is that since 1985, the cost of college has increased 538%. College costs have increased more than medical costs (286%) and gasoline (200%)! If you want your kids to go to college, you have to be proactive and prepared.
Simply put, prepaid plans are based on the cost of tuition right now and allow parents to pay in full or make predictable monthly payments. There are also multiple plans available that allow you to prepay for two or four years at a time with the ability to add additional years during Open Enrollment periods.
The 2-Year Florida College Plan covers tuition and most fees for 60 credit hours at a Florida College.
The 4-Year Florida College Plan covers tuition and most fees for 120 credit hours at a Florida College.
The 2+2 Florida Plan covers tuition and most fees for 60 credit hours at a Florida College and for 60 credit hours at a State University.
The 4-Year Florida University Plan covers tuition and most fees for 120 credit hours at a State University.
There is also a 1-Year Florida University Plan which allows you to buy up to four years at a university in one-year increments as you can afford it. There is no pressure to buy all four years at one time, and other family members could purchase a one-year increment to help – like Grandparents!
Consider this information from the 2016-2017 pricing structure, where you can purchase one year of a university education for your child.
1-Year Florida University Plan
- Monthly payment of $46.61 or a lump-sum payment of $7,373.92 for a newborn.
The best part of that? That price is LOCKED IN and will not change on you. It’s something to easily work into your household budget and is a completely worthwhile payment.
And if a grandparent wants to contribute? They can actually purchase a pre-paid plan for your child and make their own monthly payments! There’s absolutely no pressure to purchase all at once either.
“But what happens if my child does not go to college?” This is a great question with an even better answer. If your child decides, for whatever reason, to not pursue a college education (say they want to travel, for example), you can transfer a plan to a sibling OR you can receive a full refund of the money that has been paid into the plan.
Florida Prepaid College Plans are a smart and effective way to save and afford a college education! The Open Enrollment period is Oct. 15, 2017 – Feb. 28, 2018, and is the only time of the year that plans can be purchased.
If you are not a Florida resident (prepaid plans require Florida residency at the time of purchase), you can still explore smart options for college savings like a 529 savings plan. With a 529 plan, you determine when and how much to contribute and grandparents can contribute as well. A Florida 529 Savings Plan can be opened at any time, so there is no need to wait for an enrollment period!
Consider your current plan for saving for your child’s future and then consider how much smarter a Florida Prepaid or Florida 529 Savings Plan would be!
Get $25 off your application fee when you use our code: TAYLOR1718!
Families who purchase a plan early (between Oct 15th and Nov 30th) will be automatically entered to have their entire plan paid off. Doesn’t matter which plan they chose!