Florida Prepaid College Plan is a college savings plan. It permits parents to save money on a monthly basis for college tuition. Every month a fixed amount is paid in advance to the college of choice under the University of Florida. When the student comes of age, the tuition is covered under the Florida Prepaid College Plan. Let’s learn about ‘Is The Florida Prepaid College Plan Worth It?’.
Is The Florida Prepaid College Plan Worth It?
Florida prepaid plan is one of the most eminent college plans. This prepaid college plan provides a guaranteed payment of the tuition fee under the state of Florida. It allows you to lock in the college fees. It is applicable even after the tuition fees increase.
Florida Prepaid College Plan Breakdown
The Florida Prepaid College Plan is a Prepaid program controlled and managed by the College Board of Florida Prepaid. These are referred to as education plans that are purchased in the name of a student beneficiary and are to be used at an educational institution. The current fee rates of the prepaid plans are
- Florida Prepaid Tuition Plan–$115.08 per credit hour
- Florida Prepaid Local Fees Plan–$41.32 per credit hour
- Prepaid Housing Plan–Cost of the room and housing
The Prepaid Plan offered by the state of Florida pays a maximum of 120 credits. It is applied to the student account of the beneficiary as the third-party credit which reduces the total amount the account holder owes.
What Are The Pros of the Florida Prepaid College Plan?
The Florida prepaid college plan lets parents and families lock in college plan prices and pays in advance, on a monthly basis. The Florida prepaid college plan, being one of the many college prepaid plans, is a rather less risky option as it is backed by the full faith and credit of the state. The Pros of the Florida prepaid college Plan are :
- Locked in tuition rates
- Flexibility in case you choose a different college
- No limit on the saved amount
- No investment decisions
- Contracted payments
- Ability to transfer funds to a different child
- Protection against tuition inflation
- Tax benefit
What Are The Cons Of the Florida Prepaid College Plan?
As one can see, there are some very clear advantages of the Florida prepaid plan, but there are also some significant drawbacks that make it somewhat less attractive to customers. Many Families find the college prepaid plan restrictive in the long run and less attractive. Some Disadvantages of the Prepaid plan are:
- Limited options for your child
- Plans do Not necessarily cover out-of-state or Private Universities
- Limited education costs are covered
- You have to sign a contract
- Families will be dependent on state funding
- Limitations with eligible expenses
- No control over your contribution
Who Can Apply For Florida Prepaid College Plan?
Florida Prepaid College Plan can be opened by any U.S. citizen who is over the age of 18. In order to be eligible for Florida Prepaid Plan, one must have a legitimate social security number.
Any person related to the student may apply for this college plan, that is grandparents, parents, and friends too. It is mandatory for either the student or the guardian to be a Florida resident.
How To Apply For Florida Prepaid College Plan?
Florida prepaid college plan application is filed online. The application fee is $50. If you wish to include other plans, an additional fee of $10 has to be submitted. All payments are preferably done online. But you may also mail your check to the following address- Florida Prepaid College Plan, PO Box 31088, Tampa, FL 33631. You can apply for the Florida Prepaid College Plan on their website that is- https://www.myfloridaprepaid.com/.
Conclusion
Florida prepaid college plan guarantees a locked-in college tuition price. By making fixed monthly deposits, you can save money and cover your college costs with this simple savings plan. It is a risk-free investment, backed up by the state government itself. It is applicable to all in-state colleges. You can regulate the monthly amount according to your own financial needs. Thus, Florida Prepaid College Plan is risk-free and affordable.
FAQs
- Is the 529 plan the same as Florida prepaid plan?
The main difference between a prepaid plan and a regular 529 plan is that the 529 plan offers more flexibility towards the use of the saved funds. The user can use the saved funds for a multitude of things whereas the saved funds in a prepaid plan are used only for tuition cover.
- When to apply for Florida Prepaid College Plan?
The Florida Prepaid open enrollment started on February 1, 2022, and runs through April 2022.
- How much does the Florida prepaid plan cost?
The 2-year Florida college plan costs $53.70/per month, The 4-year Florida College costs $115.90/per month, the 2+2 Florida Plan costs $144.81/per month, the 1 Year Florida University Plan costs $45.16/per month, and the 4-year Florida University Plan costs $180.51/per month.
- Where to apply for the prepaid plan?
The Users can apply for the Prepaid program using the website of Florida prepaid. Which very conveniently offers the users to calculate their plan prices and costs. The website also offers all the information regarding the plan in form of PDFs and brochures.
