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State announces $1.3 Billion in savings, refunds for Florida Prepaid customers

Florida Prepaid College Plan
Posted at 1:51 PM, Jan 13, 2020
and last updated 2020-01-13 17:26:46-05

JACKSONVILLE, Fla. — Thousands of Florida Prepaid customers will soon have lower prices and refunds issued to them.

Governor Ron DeSantis announced the Florida Prepaid College Board will lower Prepaid Plan prices by $1.3 billion.

The reduction will impact about 224,000 current customers.

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Nearly half of those families will have refunds available totaling more than $500 million.

DeSantis says the savings are due to successive years of lower than anticipated tuition increases and fee inflation.

The decrease all means those with remaining plans will have lower monthly payment amounts, or may be able to pay off debt earlier than anticipated.

“My administration has been committed to holding the line on the increasing cost of higher education, and as a result, we are starting to see tuition rates level out,” said Governor DeSantis.

More than 108,000 Plans are now paid in full and can receive an average cash refund of $4,700.

Plan holders also have the option to transfer their refund to a Florida Prepaid savings account for other college expenses like books, supplies and housing.

Pricing for the upcoming 2020 plan year will have the lowest rate in five years, starting at $44 per month for a newborn.

Eligible plan holders will receive notification from the Board about their refund and/or payment reduction information.

Families can find out how their Plan will be affected by going to MyFloridaPrepaid.com/lowprices.