Florida Prepaid College Plan FAQ

Information About Purchasing a Plan

Acceptable Residency Documentation

What is acceptable proof of Florida residency?

Photocopies of the following documents will be acceptable proof of residency:

Please click here for a complete list

Account Owner Eligibility

Who may purchase a contract?

Anyone or any organization (such as a church or business) may purchase a contract for a qualified beneficiary (i.e. child who meets the Florida residency requirement). A person purchasing a contract is required by law to be a U.S. citizen or resident alien and be at least 18 years old.

Must the account owner be a resident of Florida?

No. The account owner is not required to be a resident of Florida and may be any individual, business, or organization.

May two people jointly purchase a contract for a particular child?

No. The application provides space for one account owner and one survivor. Every account must have a person designated as the account owner; designation of a survivor is optional. The existence of a survivor does not create a joint account.

However, for all tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, the approval of both account owner and survivor named on the application will be required to change the name of the account owner, survivor and beneficiary, request voluntary termination of the account, or request a refund if the account is involuntarily terminated. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan and tuition differential fee plan accounts, the survivor enjoys the right of survivorship and only the approval of the account owner named on the application is required to change the account owner, survivor or beneficiary, request voluntary termination of the account, (if the account owner requests to voluntarily terminate such an account, the survivor is notified) or request a refund if the account is involuntarily terminated. Regardless of the date of purchase of a tuition plan account, refunds for cancellations or unused benefits are issued only to the account owner; not to either the survivor or beneficiary.

May a child purchase a contract for himself?

No. Due to restrictions on minors entering into contractual agreements, account owners must be at least 18 years of age.

May an adult purchase a Florida Prepaid College Plan contract for himself?

No. An adult may not purchase a contract for him/herself because of the plan's age and grade limitations. There is no provision for adult education.

May a prepaid contract be purchased for use as a gift?

Yes. A prepaid contract may be purchased by anyone to give to a designated child. The contract must be purchased during the designated enrollment period and the recipient (beneficiary) must be a resident of Florida.

Administration/Finance

Who administers the Florida Prepaid College Plan?

The Florida Prepaid College Plan is administered by the seven-member Florida Prepaid College Board. Members of the board include the Chief Financial Officer of Florida, the Attorney General of Florida, the Chancellor of the Board of Governors of the State University System of Florida, the Chancellor of the Division of Florida Colleges of the Florida Department of Education, or their designees, and three members appointed by the Governor and subject to confirmation by the Florida Senate.

Where is the Board investing the money when I prepay tuition?

The Florida Prepaid College Board invests its funds in a variety of investment vehicles. The Board has a comprehensive investment plan that is approved by the Governor, the Chief Financial Officer of Florida and the Attorney General of Florida. This plan, including the asset allocation guidelines and investment plans for each of the investment managers, forms the basis for the Board's investment strategy. Currently, most of the funds are invested in fixed income assets (mostly government-backed securities), with the balance split between large-cap growth equities, large-cap value equities, S&P 500 core equities and small cap equities. The Board reviews the performance of its investment managers on a quarterly basis. Any revisions to this plan must be approved by the Board and resubmitted to the Governor, Chief Financial Officer and Attorney General for their approval.

Does the Board set up an individual account for my money?

No. The Florida Prepaid College Plan does not create an individual savings account for each account owner. Rather, it oversees a trust fund that combines the contributions of all participants. However, the plan does maintain records of individual participants and their contributions for purposes of providing refunds, tax reporting, and administering the tuition, local fee, tuition differential fee and dormitory payments when the student enrolls in college.

What happens if the Legislature repeals the law that established this plan?

The law may only be repealed if the Legislature makes a factual determination that the plan is financially infeasible. It should be noted that the plan has been actuarially sound since its inception and is projected to stay actuarially sound into the foreseeable future. While it is unlikely that the law establishing this plan will be repealed, all account owners of prepaid college contracts would receive the amount paid into the plan, plus interest at the rate prevailing on savings accounts offered by banks and savings and loan associations, if the plan was repealed. Also, all beneficiaries within five years of college enrollment will have their contracts fully honored.

What if interest rates or inflation change dramatically?

Participants in the Florida Prepaid College Plan need not be concerned with interest rates or inflation. The tuition, local fee, tuition differential fee and dormitory guarantees will be honored no matter what happens to interest rates, inflation, or college tuition, local fee, tuition differential fee and dormitory costs.

May funds paid into the plan be forfeited as a result of bankruptcy of the account owner?

Account owners' payments to the Florida Prepaid College Plan are exempt from forfeiture by section 222.22, Florida Statutes. This exemption may be recognized by a bankruptcy court if claimed by the debtor.

Applications

When may I apply for the Florida Prepaid College Plan?

Annual enrollment for the Florida Prepaid College Plan is open mid-October through January 31. To receive today's plan prices, you must sign up during the enrollment period.

How do I purchase a plan?

You may Sign Up Today online or you may Order An Enrollment Kit and application by mail.

I have submitted an application for the plan. What should I expect?

Processing for completed applications takes approximately six to eight weeks. If you have not received confirmation of your application by that time, please call Customer Service at 1-800-552-GRAD (4723) to inquire about the status of your application. If an application is incomplete or lacks sufficient documentation to determine residency, we notify the applicant immediately. Please call Customer Service at 1-800-552-GRAD (4723) if you have any questions regarding such notification.

When is my first monthly or lump-sum payment due?

There are three ways to pay for your Florida Prepaid College Plan:

  • Lump-Sum Payment Plan - A single, one-time payment due on April 20, 2010.
  • 5-Year Payment Plan - A total of 55 equal monthly payments, starting in April 2010 and ending in October 2013. Payments are due on the 20th of each month.
  • Monthly Payment Plan - Equal monthly payments, starting in April 2010 and ending in October of the year the child is expected to start college. Payments are due on the 20th of each month.

The monthly and five-year payment plans include an average effective interest rate of 3.88%. Participants signing up in future years may have payments which reflect a different rate. Once a contract is purchased, the designated payment amount will not change.

Do I receive an official document outlining the terms and conditions of the Prepaid contract?

The document that describes the terms and conditions applicable to Prepaid Plans is the Master Covenant. The Prepaid Plan Master Covenant is posted on this site. A copy of the Master Covenant also is mailed each year to the account owner. You also will receive a personalized Participation and Payment Schedule confirming the plan and payment method you have chosen, after your application is accepted.

Beneficiary Eligibility

May a prepaid contract be purchased for any child?

Yes, as long as the child has been a resident or full-time resident alien of Florida for the 12 months before the date of contract purchase. The year-long residency requirement does not apply to children younger than one year of age who are born in Florida. Also, children who are non-residents of Florida, but whose divorced parent is a resident of Florida, are eligible to have their Florida parent purchase a contract for them.

The child for whom the contract is purchased is called the beneficiary. The beneficiary must be under 21 years of age, and must not currently be enrolled in school beyond the 11th grade. The plan is not available to high school seniors.

What if a child is not yet a resident of the State of Florida?

Since legal residency is established through 12 continuous months of residence, children who are not eligible this year, but who continue to reside in Florida, will be eligible during the next enrollment year. Infants under one year of age who were born in Florida are considered residents.

Must the beneficiary be named when a contract is purchased?

Yes. The contract must have a named beneficiary.

What documents are acceptable as proof of residency for the beneficiary?

Photocopies of the following documents will be acceptable proof of residency:

  • Children's Residency Documentation
    • For beneficiaries less than one year of age at the time of application:
      • If the beneficiary is less than 1 year old, a copy of his/her Florida birth certificate
      • Documentation of the parent's residency as listed below
    • For students enrolled in school (K-11) or day care centers:
      • A report card, progress report, or certificate of attendance showing enrollment in a Florida public or private school or day-care center 12 months prior to the application date.

  • Parent/Guardian Residency Documentation

    To open a Prepaid Plan, the beneficiary or the parent/guardian of the beneficiary must have been a Florida resident for the last 12 consecutive months. You MUST attach proof of Florida residency to your application.

    A COPY of any ONE of the following documents will be accepted:

    • Florida driver's license issued at least one year ago. Copy of front and back.

    • Proof of full-time Florida employment for the last 12 consecutive months.

    • Military leave and earnings statement listing Florida as home of record, Florida voter registration card, Florida vehicle registration or Florida homestead exemption certificate, for the parent listed below, from at least one year ago.

NOTE: Divorced parents who are Florida residents applying for their non-resident child must also submit a copy of the order of the dissolution of marriage or the beneficiary's birth certificate.

Will a social security number be required of both the beneficiary (child) and the account owner?

A social security or tax ID number for the account owner, the survivor and the beneficiary will be required at the time of application. Tuition cannot be paid without a valid social security number or tax identification number.

If a Florida resident is attending an out-of-state boarding school, is the child eligible for the Florida Prepaid College Plan?

Yes. Children who are Florida residents attending an out-of-state school are eligible as long as they are under 21 years of age and enrolled in or below the eleventh grade. The account owner may supply, in lieu of a report card, residency documentation of a parent or legal guardian, such as a driver's license or voter registration card, or other documentation indicated above.

Do children of families who maintain two domiciles, one in Florida and one outside of Florida, qualify for the Florida Prepaid College Plan?

Children of families who maintain a residence in another state will be considered Florida residents if a parent or legal guardian supplies residency documentation which indicates that he or she has maintained a Florida residence for at least the last 12 months. A Florida driver's license issued at least one year ago is the best evidence of Florida residency.

If a grandparent or other prospective account owner has trouble obtaining a report card for a beneficiary, what residency documentation may he or she submit?

A prospective account owner may request a "certificate of attendance" from the school. Most schools will provide this certificate readily. The certificate should indicate attendance during the previous school year. The account owner may also submit residency documentation of the parent or guardian such as a Florida driver's license or voter's registration card.

What if a beneficiary moves away from Florida prior to enrollment in a state university or community college?

A beneficiary's change in residency, once the contract is purchased, does not affect the contract. The beneficiary will still be eligible to attend Florida state universities and community colleges as a resident for tuition purposes. The Florida Prepaid College Plan will pay tuition, the tuition differential fee, local fees or dormitory fees, depending on the type of plan(s) you purchase. No out-of-state fees will be charged to the prepaid beneficiary by the state university or community college.

Contract Coverage

Are prepaid tuition, local fees and tuition differential fees measured in academic years or credit hours?

Prepaid tuition plans, local fee and tuition differential fee plans are measured in credit hours.

  • Four-year plans (tuition, local fee, tuition differential fee) cover 120 university undergraduate credit hours
  • Two-year community college plans (tuition and local fee) cover 60 community college credit hours
  • "2+2" plans (tuition and local fee) cover 60 community college credit hours and 60 university undergraduate credit hours, and the tuition differential fee plan covers only 60 university undergraduate credit hours.

Students attending part-time may use their prepaid tuition credit over a period as long as 10 years from the projected enrollment year indicated in the contract. Years in military service do not count toward the 10-year contract expiration period.

How is prepaid dormitory measured?

Dormitory contracts are measured in two-semester increments.

What costs are covered by the Florida Prepaid College Plan?

The Florida Prepaid College Plan tuition contract covers the registration fee at Florida state universities and community colleges which consists of the following categories:

  • Tuition Fee
  • Building Fee
  • Capital Improvement Trust Fund Fee
  • Financial Aid Fee

 

The tuition differential fee covers the tuition differential fee at Florida’s state universities.

Local fee contracts cover fees that are imposed on individual Florida state university and community college campuses. These fees are charged in addition to the tuition charged by the state university or community college. Local fees consist of the following five fees:

  • Activity and Service Fee
  • Health Fee
  • Athletic Fee
  • Student Activity Fee (charged by community colleges only)
  • Technology Fee (charged by community colleges only and limited to contracts purchased after 7/1/99).

 

Dormitory contracts cover the cost of a double-occupancy, air-conditioned room. Fall and Spring semester dormitory fees are covered. Summer dormitory fees are not covered because the schools charge significantly lower rates during the summer than those charged during the fall and spring semesters. By using their dormitory contracts in the summer, Prepaid beneficiaries would not receive the full benefit of their contract.

How will tuition benefits be paid when the student is ready to enter college?

The Florida Prepaid College Plan will issue an identification card and other documentation to the beneficiary to present to the college at the time of class registration and fee payment. The college will then bill the program. The student will not need cash to pay the tuition, but will be responsible for all fees not covered by the plan.

Can you apply the benefits of tuition, tuition differential fee and local fee contracts towards the cost of graduate or professional school?

Yes, the benefits of a tuition, tuition differential fee or local fee plan (i.e., payment of undergraduate tuition and local fees) may be applied toward a portion of the costs of graduate-level courses (graduate-level tuition and fees are typically more expensive than undergraduate tuition and local fees).

Contract Length

How long is the contract valid?

The contract is valid for 10 years from the beneficiary's projected enrollment date. As a result, if the student is held back a grade, or decides to wait a few years before enrolling in college, the contract benefits will be available when the beneficiary does enroll. The 10-year contract period will be extended for any time during which a beneficiary is enlisted in military service. The contract may be extended for another 10-year period upon Board approval. The Board may assess renewal fees at that time. Tuition, local fee, and dormitory benefits not extended prior to the 10-year expiration period will be forfeited.

What if a student graduates early from high school?

The contract may be utilized up to three years prior to the projected enrollment date if the child graduates from high school early. The account owner must provide written notice to the program at least 180 days prior to the new matriculation date and bring the contract current at the time the date is advanced.

What if a student decides to serve in the military before going to college?

Time in military service will not count toward the regular expiration period of the contract. There is no limit to the amount of time a beneficiary may serve in the military without risking expiration of the contract.

Divorced Parents

What are the eligibility rules for a child of a divorced or separated couple in which one of the parents is not a Florida resident?

A parent, who is a Florida resident but whose child's primary residence is with another parent outside of Florida, may purchase a plan for the child. The parent must also submit a copy of the order of the dissolution of marriage or the beneficiary's birth certificate.

A parent, who is not a Florida resident but whose child's primary residence is with another parent in Florida, may purchase a plan for the child. The parent must provide the appropriate residency documentation for the child, or the other parent in Florida.

A parent, who lives out of state and who provides the primary residence for his/her child who also lives out of state, cannot purchase a plan for that child, even if the other parent is a Florida resident. However, the non-custodial parent, who is a resident of Florida, may purchase a plan for the child.

Military Families

How may military personnel stationed outside Florida document their Florida residency?

Military personnel stationed outside Florida are considered Florida residents if their military orders indicate that Florida is their "home of record." A copy of this, or any military document showing Florida as their home of record, will be sufficient to establish residency.

Payment Options

What payment options are available?

Three options:

  • A single lump-sum payment;
  • A monthly payment plan of equal payments each month until October of the year the child enters college; and
  • A five-year installment plan of 55 equal monthly payments. This plan is only available for students who are enrolled in or below the eighth grade.
What is the cost of the various plans?

Florida Prepaid College Plan contracts are priced based on the plan chosen, the payment option chosen, and the age of the beneficiary at the time the contract is purchased. Costs for each plan and payment option are delineated in the Enrollment Kit and in the "Plan Prices" section of this site. The Florida Prepaid College Board evaluates the contract prices annually and determines whether the prices must be increased in order to meet the projected costs associated with the contracts. Although contract prices may increase for future account owners, the price established for a contract when it is purchased will not change, regardless of subsequent increases in tuition or fees.

How is the price of a Prepaid Plan contract established?

The Florida Prepaid College Board approves the price structure for the various contract plans and payment options on an annual basis. The Board's decision is based on an actuarial analysis of the funds necessary to yield sufficient interest to meet the projected future cost of Florida state university or community college fees.

How do I make installment payments?

Many account owners enjoy the convenience of having their payments automatically transferred from their checking or savings accounts. In addition, many account owners enjoy the ease of making monthly payments through payroll deduction. Your payroll or personnel office can provide information about the availability of this benefit. Monthly payments may also be made through a coupon book.

What is the effective interest rate of the monthly payment plan and the five-year installment plan?

The monthly and five-year payment plans include an average effective interest rate of 3.88%. Participants signing up in future years may have payments which reflect a different rate. Once a contract is purchased, the designated payment amount will not change.

May I pay tuition with a lump-sum payment?

Yes.

Instead of using the installment plan, could I borrow money to make the lump-sum payment?

Yes. A bank or other financial institution may be willing to lend you money to make the lump-sum payment. You may then arrange payment terms with the financial institution that may be more flexible than those in the Prepaid Plan's installment payment plans. Interest on a loan secured by a home mortgage, used to finance the lump-sum payment, may be deductible for Federal income tax purposes, with certain restrictions. Detailed information regarding the tax consequences is available from your tax advisor. (Neither monies paid into the plan nor benefits accrued through the plan may be pledged for the purpose of securing a loan.)

May I have payments withdrawn from my checking or savings account?

Yes. Most financial institutions permit deductions from a checking or savings account for the Florida Prepaid College Plan through the Automated Clearinghouse (ACH). Many account owners find that monthly deductions from a bank or credit union account are the most convenient method of payment. You may consult your particular financial institution to see if it provides this service. Each account owner who selects an installment plan will be mailed an application to make payments through automatic deduction.

May I make installment payments through payroll deduction?

Yes. Many account owners find that monthly payroll deductions are the most convenient method of payment. Provisions have been made for employees of the State of Florida and other public and private employers to receive payroll deductions to participate in the Prepaid Plan. Your payroll or personnel department can provide more information about the availability of this benefit.

May account owners withdraw funds from a 401k retirement plan to pay for the Florida Prepaid College Plan?

Since these plans are administered by individual employers, applicants should consult their employers.

May the account owner and survivor of a contract establish split payments?

The Board will issue only one coupon book to the account owner; however, anyone may make a payment to the account by sending the payment to us at P.O. Box 31088, Tampa, Florida 33631-3088. For posting purposes, the check must include the account number(s) for which payment is intended.

May I make a "down payment" on a tuition plan and pay the remainder in installments?

No. Participants wishing to finance a payment to the Florida Prepaid College Plan should consider making a full lump-sum payment or borrowing the amount they wish to finance from their financial institution.

If I choose the installment plan, may I pay it off early?

Yes. Participants may call Customer Service at 1-800-552-GRAD (4723) to receive a payoff amount. There is no prepayment penalty.

May I make a larger payment than my normal monthly payment?

Yes. A larger payment will not reduce the total payment amount you must make under the installment plan. It will merely allow you to pay off this total more quickly. It may also serve as a "cushion" if you are unable to make a payment in a future month. Only by requesting an early payoff of the entire amount will a "prepayment" result in a reduction of the total payments due on the installment plan.

May I borrow against my payments or the contract benefits?

No. Neither monies paid into the plan nor benefits accrued through the plan may be pledged for the purpose of securing a loan.

Plan Types

Tuition Plans

  • The Four-Year University Tuition Plan covers the registration fee (tuition, building, Capital Improvement Trust Fund, and student financial aid fees) associated with 120 undergraduate credit hours of enrollment in a state university in Florida.
  • The 2 + 2 Tuition Plan covers the registration fee (tuition, building, Capital Improvement Trust Fund, and student financial aid fees) associated with 60 lower division credit hours of enrollment in a community college and 60 undergraduate credit hours at a state university in Florida.
  • The Two-Year Community College Tuition Plan covers the registration fee (tuition, building, Capital Improvement Trust Fund, and student financial aid fees) associated with 60 lower division credit hours of enrollment in a community college.

Local Fee Plans

  • The Four-Year University Local Fee Plan only covers the student activity and service, athletic and health fees associated with 120 undergraduate credit hours of enrollment in a state university in Florida.
  • The 2 + 2 Local Fee Plan only covers the student activity and technology fees associated with 60 credit hours of enrollment in a community college, and the student activity and service, athletic and health fees associated with 60 undergraduate credit hours at a state university in Florida.
  • The Two-Year Community College Local Fee Plan only covers the student activity and technology fees associated with 60 credit hours of enrollment in a community college.

Please note:

  1. Local fee plans may only be purchased in conjunction with the corresponding tuition plan.
  2. Local fee plans are only available for students enrolled in or below the eighth grade.
Tuition Differential Fee Plan

The tuition differential fee plan covers the supplemental fee charged to a student for instruction provided by a Florida state university pursuant to Section 1009.24 (16) Florida Statutes.

The tuition differential fee plan supplements a 4-Year University Tuition Plan or 2+2 Tuition Plan; therefore, the tuition differential fee plan will be the same type as your tuition plan.

Please note:

  • Tuition differential fee plans may only be purchased in conjunction with the corresponding tuition plan.
  • Tuition differential fee plans are only available for students enrolled in or below the eighth grade.
Dormitory Plans

Dormitory Plans cover the dormitory fees associated with residence in a double-occupancy, air-conditioned room on a state university campus. State universities may limit the dormitories eligible for prepaid coverage. The dormitory plans are available in one-year (two semesters) increments.

Please note:

  1. Dormitory plans may only be purchased in conjunction with a four-year state university or 2 + 2 tuition plan.
  2. Dormitory plans are only available for students enrolled in or below the eighth grade.

Information About My Existing Plan

Beneficiary Changes

May I change the beneficiary?

Yes. For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, the notarized signature or the account owner and the survivor are required on a written request to change the beneficiary (student). For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, the account owner may change the beneficiary (student) on the account by submitting a written, notarized request signed by the account owner. Click here for the Change of Beneficiary Form.

A beneficiary change to a family member is a non-taxable event and is not subject to federal income tax or the additional 10 percent federal tax. The plan does not charge a fee to change the beneficiary. A family member is defined as a person related to the beneficiary as follows:

  • A son or daughter, or a descendant of either
  • A stepson or stepdaughter
  • A brother, sister, stepbrother or stepsister
  • The father or mother, or an ancestor of either
  • A stepfather or stepmother
  • A son or daughter of a brother or sister
  • A brother or sister of the father or mother
  • A son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law
  • The spouse of any of the foregoing individuals, including the beneficiary
  • A first cousin of the beneficiary

For this purpose a child includes a legally adopted child and a brother or sister includes a half-brother or a half-sister.

Note: The new beneficiary must meet the standard requirements for Florida residency and must be in the 11th grade or younger and under the age of 21. If the new beneficiary is over the age of 21, this contract change will require a special petition to the Florida Prepaid College Board. The special petition must be in writing, signed by the Purchaser.

If the account owner has an installment payment plan and the contract is transferred to an older sibling who enrolls in college prior to completion of the installment payments, the account owner must pay off the contract in order for the student to utilize the contract benefits.

If a child with a contract uses only a portion of the contract, may the remainder be transferred to a sibling?

Yes, as long as the new beneficiary does not have an active prepaid plan with benefits still available. The new beneficiary must also still meet standard residency requirements.

Click here to view the Beneficiary Change Form

What are my options if the child enrolls in a college or university but decides to leave school prior to graduating?

There are at least two options. First, Prepaid Plan benefits are valid for 10 years after the beneficiary graduates from high school. Since many students who leave college at some point during their college career later decide to return, it may be a good idea to maintain the contract while the student sorts out his or her postsecondary options and tries to decide whether they will return to college. Second, if the beneficiary decides not to return to college, the contract may be cancelled and a refund requested for the unused portion of the contract. Refunds are available for the payments made to the plan for the unused portion of the contract, minus a cancellation fee of $50 or 50 percent of monies paid in, whichever is less, and any outstanding fees. (This cancellation fee is waived if the contract has been maintained for more than two years.)

May a beneficiary's contract be transferred to a parent or step-parent?

A beneficiary's contract may be transferred to a "family member" of the original beneficiary. Please see "Account Owner Eligibility" for guidelines.

What are my options if a child who has a contract with the Florida Prepaid College Plan decides to drop out of high school?

There are least three alternatives. First, the account can be maintained for later use by the beneficiary, since beneficiaries have 10 years from their projected postsecondary enrollment date to use the Plan benefits. If the beneficiary completes a diploma or its equivalent, the Plan is still available for postsecondary use. Second, the account may be cancelled and a refund may be requested of monies paid into the Florida Prepaid College Plan. Third, the contract may be transferred to a family member of the original beneficiary if he or she drops out of high school.

Cancellations/Refunds

Will I ever lose money by participating in the Florida Prepaid College Plan?

No. If, for any reason, a refund of the money paid into the plan is requested, that amount will be refunded in full, less a cancellation fee of $50 (waived for contracts held for more than two years) or 50 percent of the amount paid into the program, whichever is less.

May I cancel a tuition plan without cancelling the local fee, tuition differential fee and/or dormitory fee plan?

No. If you hold a tuition contract and a local fee, a dormitory and/or a tuition differential fee contract, cancellation of the tuition contract will automatically cancel the dormitory, tuition differential fee and/or local fee contract.

May I cancel a local fee, tuition differential fee and/or dormitory contract without canceling the tuition contract?

Yes. A local fee, tuition differential fee and/or dormitory plan contract may be cancelled without canceling the tuition plan contract.

If I cancel the local fee, tuition differential fee and/or dormitory contract, and then cancel the tuition contract at a later date, do I pay multiple cancellation fees?

Yes. A cancellation fee of 50 percent of the monies paid into the plan or $50 (waived for contracts held for more than two years), whichever is less, will be assessed with each cancellation.

If my plans change, may I get my money back or stop making payments? May I request cancellation at any time? How long must I wait for my refund?

An account may be cancelled at any time. Refunds for cancelled accounts will be for the monies paid, less any outstanding fees and a cancellation fee of 50 percent of the monies paid into the plan or $50, whichever is less (waived if the contract is held for more than two years).

For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to voluntarily cancel an account and request a refund. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to voluntarily cancel an account and receive a refund. If the Board receives a cancellation request, a refund check will be mailed within 45 days. In either case, the refund will be made payable to the account owner.

If I must cancel my contract, may I re-enroll in the Prepaid Plan later at the price I paid for my original contract?

No. A person may re-enter the plan during a subsequent enrollment period, but a new contract will be established. It is likely that contract costs will be higher at the time of re-entry than when the person purchased the original contract. For this reason, it is to the participant's advantage to remain in the plan.

Click here to view the Cancellation Form.

Change of Residence

How do I change the address on the account?

Please write the Florida Prepaid College Board at P.O. Box 6567, Tallahassee, Florida 32314-6567 to request a change of address. The request should include the account owner's signature.

How does an out-of-state move affect our prepaid contract?

Moving out-of-state does not affect the contract. The child may still enroll in a state university or community college in Florida as an in-state student for tuition purposes.

Contract Changes

May I change the type of plan or payment option once I've contracted for a particular plan?

New account owners have until March 15, 2010 to make any contract changes. After that time, they must cancel their contract and purchase a new contract during subsequent open enrollment period. Once the beneficiary enrolls in college, the plan will automatically convert the tuition value of a university contract to the value of the community college contract for each semester the beneficiary enrolls in a community college. Similarly, the plan will automatically convert the tuition value of a community college contract to the value of the university contract for each semester the beneficiary enrolls in a state university. These conversions also apply to a corresponding local fee contract purchased in conjunction with a tuition contract but do not apply to a tuition differential fee plan when the beneficiary attends a community college.

May I use my four-year university plan benefits at a community college?

Yes. The plan will automatically convert the full tuition value of the four-year university contract to the value of the community college contract for each semester the beneficiary enrolls in a community college. This conversion also applies to a local fee contract purchased in conjunction with a tuition contract.

May I utilize my two-year community college or "2 + 2" plan at a four-year university?

Yes. The plan will automatically convert the full tuition value of the two-year community college or "2 + 2" plan for each semester the beneficiary enrolls in a four-year institution. This conversion also applies to a local fee contract purchased in conjunction with a tuition contract (but does not apply to a tuition differential fee plan). Because community college credits cost less than university credits, the student will be responsible for any remaining university credit hours needed to graduate.

Death/Insurance

What if an account owner dies before the installments on a contract are fully paid?

The Florida Prepaid College Plan offers a group term life insurance on the life of the account owner, survivor and/or the student (beneficiary) through the Fidelity Security Life Insurance Company. Please call 1-800-552-GRAD (4723), prompt 4, for additional information.

If an uninsured account owner dies before the contract is paid in full, and if no provision has been made for contract payment, then the survivor or another individual will be required to make payments to maintain the contract. If no payments are received, the contract will be involuntarily terminated; a refund for the money paid into the plan is available.

What if the student (beneficiary) dies or is disabled before attending college?

The Florida Prepaid College Plan contract may be transferred to a member of the beneficiary’s family or a request to cancel the contract and receive a refund may be submitted. In the case of death or disability of the beneficiary, the cancellation fee will be waived, and the amount of the refund will be an amount not to exceed the current average rates at state postsecondary institutions.

For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to request the refund. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to receive the refund. In either case, the refund will be made payable to the account owner.

If the original account owner is deceased, who may apply for a refund?

If the account's owner named a co-purchaser (i.e., the "survivor" on the application form), all rights of the account owner (including the right to cancel the account and receive a refund) pass to the survivor upon the account owner's death. If no co-purchaser was named by the account owner, the account is considered to be an asset of the account owner's probate estate and the account owner's rights may be exercised by the personal representative of the account owner's estate.

How Do I?

How do I get information regarding my account?

Please call Customer Service at 1-800-552-GRAD (4723).

How do I cancel a contract?

Click here to view the Cancellation Form. For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to cancel the account. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to cancel the account. In either case, refunds for cancelled accounts are made payable only to the account owner.

How do I replace a missing coupon book?

Please call Customer Service at 1-800-552-GRAD (4723) to request a new coupon book. Until you receive the new coupon book, you may send payments to the Florida Prepaid College Board at P.O. Box 31088, Tampa, Florida 33631-3088. Please write the account number(s) on the check for which you are making payment.

How do I replace a lost ID card?

Please call Customer Service at 1-800-552-GRAD (4723) to request a new ID card.

How do I change the address on the account?

For security purposes, changes of address must be sent to the Florida Prepaid College Board at P.O. Box 6567, Tallahassee, Florida 32314-6567 to request a change of address. The request must include the account owner's signature.

How do I change the account owner?

Click here for the Account Owner Change Form. For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to change the account owner. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan and tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to change the account owner.

How do I change the name of the account beneficiary?

Click here to view the Beneficiary Change Form. For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to change the beneficiary. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan and tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to change the beneficiary. In either case, the request must include documentation that the substitute beneficiary meets the residency requirements for Program eligibility. Benefits may be transferred to a family member of the original beneficiary. Please see "Account Owner Eligibility" for guidelines.

How do I use the plan at an out-of-state college or a private college in Florida?

Click here to view the Transfer Form.

How do I add a local fee plan, tuition differential fee plan and/or dormitory plan to my current contract(s)?

Local fee, tuition differential fee and dormitory plans may only be added during the annual enrollment period for children currently in the eighth grade or younger. You may add a local fee, tuition differential fee and/or dormitory plan online.

How do I request a payoff balance?

Please call Customer Service at 1-800-552-GRAD (4723) to request a payoff balance.

How do I request a scholarship refund?

Click here to view the Scholarship Refund Form. The request should include the scholarship award letter and the beneficiary's class schedule for that term. Scholarship refund requests must be submitted each term that the scholarship is awarded.

How do I request a refund based on the disability of the beneficiary?

Please call Customer Service at 1-800-552-GRAD (4723).

How do I request a refund based on the death of the beneficiary?

Please call Customer Service at 1-800-552-GRAD (4723).

Late Payments

What is considered a late payment?

Monthly payments are due on the 20th of each month. A late fee of $10 is assessed for each payment received more than 15 days from the due date. The late fee will be charged for each month a payment is late.

At what point will the Board terminate a contract for nonpayment?

An account is considered "delinquent" if a payment has not been received within 30 days of the due date. Account payments must be brought current within 180 days from the date of the notice of delinquency. If the payments are not brought current within 210 days of the original due date, the contract will be terminated.

Upon contract termination, a refund of the money paid into the Plan, minus a cancellation fee of $50 or 50 percent of the monies paid into the plan, whichever amount is less, and minus any outstanding late and non-sufficient fund fees is available. (The cancellation fee is waived if the account owner holds the contract for more than two years.) For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to request the refund. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan and tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to receive the refund. In either case, the refund will be made payable to the account owner.

Payment Information

I don't have the coupon for my monthly payment. What should I do?

You may call Customer Service at 1-800-552-GRAD (4723) to request a replacement coupon book. Payments may be sent to the Florida Prepaid College Board at P.O. Box 31088, Tampa, Florida 33631-3088. Checks sent without a coupon should identify the account number(s) for which payment is intended.

I'm not the account owner. May I contribute to a child's account?

Anyone may contribute to a child's account. For posting purposes, the contributor should have the account number for which the payment is intended.

I would like to pay my account in full. How may I get the account balance?

Account balances and payoff amounts can be obtained by accessing our Automated Information System or our Customer Service department by calling 1-800-552-GRAD (4723) and pressing prompt 2.

May I have payments automatically withdrawn from my savings or checking account?

Yes. Please call Customer Service at 1-800-552-GRAD (4723) to request the necessary paperwork.

May I have payments payroll deducted?

Please check with your payroll or personnel office to determine whether payroll deduction is available.

As an employer, how do I initiate payroll deduction for my employees?

Please call Customer Service at 1-800-552-GRAD (4723) to establish payroll deduction accounts.

May I pay multiple accounts with one check?

Yes. Please write the account numbers to which the payment applies on the check.

I am changing banks/credit unions and have my monthly payments withdrawn from my account. How do I change the account for automatic payment?

Please call Customer Service at 1-800-552-GRAD (4723).

What is considered a late payment?

Monthly payments are due on the 20th of each month. A late fee of $10 is assessed for each payment received more than 15 days from the due date. The late fee will be charged for each month a payment is late.

At what point will the Board terminate a contract for nonpayment?

An account is considered "delinquent" if a payment has not been received within 30 days of the due date. Account payments must be brought current within 180 days from the date of the notice of delinquency. If the payments are not brought current within 210 days of the original due date, the contract will be terminated.

Upon contract termination, a refund of the money paid into the Plan, minus a cancellation fee of $50 or 50 percent of the monies paid into the plan, whichever amount is less, and minus any outstanding late and non-sufficient fund fees is available. (The cancellation fee is waived if the account owner holds the contract for more than two years.) For tuition plan accounts purchased on or after February 1, 2009, and any associated dormitory plan, local fee plan or tuition differential fee plan accounts, a written, notarized request signed by both the account owner and survivor is required to request the refund. For tuition plan accounts purchased prior to February 1, 2009, and any associated dormitory plan, local fee plan and tuition differential fee plan accounts, a written, notarized request signed by the account owner is required to receive the refund. In either case, the refund will be made payable to the account owner.

Plans and Plan Changes

Which plans will supplement my current tuition contract?

Local Fee Plans

  • The Four-Year University Local Fee Plan covers the local fees (student activity and service, athletic, and health fees) associated with 120 university undergraduate credit hours.
  • The 2 + 2 Local Fee Plan covers the local fees associated with 60 community college credit hours (student activity and technology fees) and 60 university undergraduate credit hours (student activity and service, athletic, and health fees).
  • The Two-Year Community College Local Fee Plan covers the student activity and technology fees associated with 60 community college credit hours.

Please note:

1. Local fee plans may only be purchased in conjunction with the corresponding tuition plan.

2. Local fee plans are only available for students in the eighth grade or younger.

Tuition Differential Fee Plans

  • The tuition differential fee plan covers the supplemental fee charged to a student for instruction provided by a Florida state university pursuant to Section 1009.24 (16) Florida Statutes.
  • The tuition differential fee plan supplements a 4-Year University Tuition Plan or 2+2 Tuition Plan; therefore, the tuition differential fee plan will be the same type as your tuition plan.

Please note:

1. Tuition differential fee plans may only be purchased in conjunction with the corresponding tuition plan.

2. Tuition differential fee plans are only available for students enrolled in or below the eighth grade.

Dormitory Plans

Dormitory Plans cover the dormitory fees associated with residence in a double-occupancy, air-conditioned room on a state university campus. State universities may limit the dormitories eligible for prepaid coverage. The dormitory plans are available in one-year (two semesters) increments.

Please note:

1. Dormitory plans may only be purchased in conjunction with a four-year state university or 2 + 2 tuition plan.

2. Dormitory plans are only available for students enrolled in or below the eighth grade.

May I upgrade from a two-year plan to a 2+2 or four-year plan? May I upgrade from a 2+2 plan to a four-year plan? May I add additional years to my current dormitory contract?

No. You may cancel the current contract and reapply for the preferred contract during a Program enrollment period. The new contract will be based on current contract prices, rather than the prices in effect when the original contract was purchased.

May I convert to a plan of lesser value? May I drop years from a dormitory contract or convert from a four-year contract to a 2+2 or two-year contract?

Yes. Please call Customer Service at 1-800-552-GRAD (4723) to discuss your options.

May I purchase the first two years of a combined community college/university plan now, and then purchase the remaining two years at a future date?

No. There are no provisions for a "split" purchase of a contract.

Information About the Tuition Differential Fee Plan

Tuition Differential Fee Plan

What is the tuition differential fee?

The tuition differential fee allows Florida state universities to raise revenue to improve the quality of undergraduate instruction and to increase the availability of financial aid. Each university will determine how the fee is used.

How much is the tuition differential fee?

All of Florida’s state universities charge the tuition differential fee and provides that the sum of tuition and tuition differential fees may increase up to 15% annually until the sum of tuition and all fees assessed by state universities reach the national average of tuition and fees at public universities.

Who will have to pay the tuition differential fee?

Newly enrolled undergraduates at all of Florida’s state universities must pay the fee, including students with Bright Futures scholarships. Newly enrolled students include freshmen and transfers.

Who is exempt from paying the tuition differential fee?

Beneficiaries whose University Tuition or University plus Community College Tuition Plans were purchased as of January 31, 2007, are exempt from the tuition differential fee. The tuition differential fee also may be waived by the university for students who meet the eligibility standards of the Florida public student assistance grant.

Why are the prices for the Tuition Differential Fee Plan so much higher than those for Tuition?

During the 2009 session of the legislature, changes were made to the tuition differential fee statute. This legislation, Senate Bill 762, allowed all state universities to collect the tuition differential fee and provides that the sum of tuition and tuition differential fees may increase up to 15% annually until the sum of tuition and all fees assessed by state universities reach the national average of tuition and fees at public universities. Previously, the tuition differential fee could not exceed 40% of regular tuition. As a result, in the future, the tuition differential fee is anticipated to be equal to or greater than tuition by 2017 or 2018.

How can I save for the additional cost of a tuition differential fee?

A separate Florida Prepaid College Plan to cover the required tuition differential fee is offered by the Florida Prepaid College Board. Families also can save for this additional expense with the Florida College Investment Plan, also offered by the Board. The College Investment Plan is a tax-free savings plan covering college expenses such as tuition, fees, books, room and board. However, unlike the guarantee attached to the Prepaid College Plan, the College Investment Plan carries with it the risks of investing.

Information About How to Use Your Florida Prepaid College Plan Benefits

Dormitory Contracts

What type of dormitory room is provided with a Prepaid contract?

Each state university in Florida has specified a set of double-occupancy, air-conditioned rooms that will be allocated to prepaid beneficiaries, subject to availability.

What will happen if there is insufficient dormitory space to accommodate all students with Prepaid dormitory contracts?

Students will receive a refund of their prepaid dormitory contract equal to the actual price of dormitory space at that time at the Florida state university that they are attending. The refund will be provided for two semesters so that it may be used to offset costs associated with off-campus housing.

Is the dormitory contract transferable to a privately-owned dormitory or apartment?

No. A refund may be requested for the amount paid for the dormitory contract.

Is the dormitory contract transferable for use at a fraternity or sorority house?

Yes, if the fraternity or sorority is university-held. The Plan will transfer the funds for dormitory contracts to any eligible university-held residence designated by the university. The amount transferred may not exceed the cost of university dormitory fees covered by the Plan at that university.

Is the dormitory contract transferable to community college-held residences?

Yes. The Plan will transfer funds to either a community college that directly operates one or more dormitory residences or to the community college direct-support organization (DSO) that operates dormitory residences. The Plan may pay the fees charged by the community college or DSO or the maximum fees charged for state university dormitory residence, whichever is less.

If I purchase a four-year university contract with a dormitory contract and then want to convert my plan to a "2+2" contract, may I transfer the dormitory contract to be used during the third and fourth years of the "2+2" contract?

Yes. The Florida Prepaid College Plan will transfer up to two years of prepaid dormitory expenses when a four-year, university plan is converted to a “2+2” plan. A refund is available for the amount paid for any additional years of the dormitory plan that have been prepaid.

Which state university dormitories are available?

Please see the Approved Dormitories.

Out-of-State Usage

Which out-of-state institutions are eligible for the transfer of prepaid benefits?

Prepaid plan benefits may be used at any public or private out-of-state college or university that is an eligible educational institution under s. 529 of the Internal Revenue Code (i.e., the institution is eligible for federal student financial assistance).

My family has moved out-of-state. Are we still eligible to participate in the Program?

Once a prepaid contract is issued, the eligibility has already been established. Section 1009.98(a)1 and (b)1, Florida Statutes, further specifies that prepaid students who move out-of-state may return to a state university or public community college in Florida as in-state students for tuition purposes.

The student wants to attend an eligible out-of-state institution. What should I do to have the benefits transferred?

Click here to view the Transfer Form.

How is the out-of-state transfer calculated?

Section 1009.98(3), Florida Statutes, specifies that funds transferred to eligible out-of-state institutions may not exceed the current fee rates in Florida's state universities.

Scholarships/Financial Aid

What if a beneficiary receives a scholarship?

There are two types of scholarships. One type of scholarship may be used solely for the purposes of paying for course registration. The second type of scholarship awards a fixed amount or an amount equal to or greater than the cost of fees. The latter type of scholarship may be used for any purpose.

If a student receives a scholarship that is not limited to the payment of registration fees, such as the Bright Futures Scholarship, there are three options:

  1. The Florida Prepaid College Plan benefits may be used by the beneficiary as originally planned. The college or university will issue a check to the student for the scholarship. These funds may then be used by the student to offset expenses that are not covered by the prepaid contract.
  2. The contract can be transferred to a family member of the original beneficiary. Click here to view the Change of Beneficiary Form.
  3. The account owner may request a scholarship refund and receive an amount equal to the current rates for state university fees paid on a semester-by-semester basis. Click here to view the Scholarship Refund Form.

If a student receives a scholarship that is limited to the payment of registration fees, there are two options:

  1. The contract may be transferred to a family member of the original beneficiary. Click here to view the Change of Beneficiary Form.
  2. The account owner may request a scholarship refund and receive an amount equal to the current rates for state university fees paid on a semester-by-semester basis. Click here to view the Scholarship Refund Form.
How will the plan affect the beneficiary's eligibility for financial aid?

As a result of the Deficit Reduction Act of 2005, 529 plans, such as the Florida Prepaid College Plan, will be treated as an asset of the account owner for federal aid purposes effective July 1, 2006. During their junior year in high school, students should contact the financial aid office of any college they plan to attend for more information on the precise impact of the Plan on need-based financial aid.

How does the Florida Prepaid College Plan work with Bright Futures Scholarships?

Bright Futures Scholarships and the Florida Prepaid College Plan complement one another.

What do I do with my Prepaid Plan benefits if my child is eligible for a Bright Futures Scholarship?

There are three options if the account beneficiary is eligible for this scholarship:

  1. The beneficiary may use the Florida Prepaid College Plan benefits as originally planned. The college or university will issue a check to the student for the scholarship. These funds may then be used by the student to offset expenses that are not covered by the Prepaid contract.
  2. The contract may be transferred to a family member of the original beneficiary; however, plan benefits may not be transferred in the same year usage occurred. Please see "Beneficiary Changes" for guidelines. Click here to view the Change of Beneficiary Form.
  3. The account owner may request a scholarship refund and receive an amount equal to the current rates for state university fees paid on a semester-by-semester basis. Click here to view the Scholarship Refund Form.

Schools/Admissions

What universities and community colleges are covered in the Program?

All of Florida's 11 state universities and 28 community colleges, including the nine colleges that grant baccalaureate degrees, are participating in the Florida Prepaid College Plan. See Approved Colleges. The value of the tuition contract may also be transferred to a private college or university in Florida that is an eligible educational institution under s. 529 of the Internal Revenue Code (i.e., the institution is eligible for federal student financial assistance). See Approved Colleges.

What happens if the beneficiary chooses to attend an out-of-state institution?

If the beneficiary attends an out-of-state college, public or private, the Florida Prepaid College Plan will transfer an amount equaling the current rates paid to a public university in Florida. The out-of-state college must be an eligible educational institution under s. 529 of the Internal Revenue Code (i.e., the institution must be eligible for federal student financial assistance).

Click here to view the Transfer Form.

What happens if the beneficiary chooses to attend an in-state private institution?

If the beneficiary attends a private college or university in Florida, the Florida Prepaid College Plan will transfer an amount equal to the value of the prepaid plan(s) at the time of college enrollment. The in-state private institution must be an eligible educational institution under s. 529 of the Internal Revenue Code (i.e., the institution must be eligible for federal student financial assistance).

Click here to view the Transfer Form.

What happens if the beneficiary chooses not to attend college?

Prepaid benefits are valid for 10 years after the beneficiary graduates from high school. Since many students do not enroll in college immediately after high school graduation, it may be a good idea to maintain the contract while the student sorts out his or her postsecondary options. If the beneficiary does not attend college, the contract may be cancelled and a refund requested. Refunds are available for the payments made to the plan minus a cancellation fee of $50 or 50 percent of monies paid in, whichever is less, and any outstanding fees. (This cancellation fee is waived if the contract has been maintained for more than two years.) The contract may also be transferred to a "family member" of the original beneficiary. Please see "Beneficiary Changes" for guidelines.

Does the purchase of a tuition contract guarantee the beneficiary admission to a state university?

No. The purchase of a Florida Prepaid College Plan contract can not guarantee the beneficiary's admission to the state university of their choice. State universities have differing admission standards, depending on the number of spaces available for incoming freshmen and number of applications submitted for those spaces. All applicants to state universities compete with one another on the basis of high school grades and scores on the Scholastic Aptitude Test (SAT) or American College Test (ACT).

Every student who earns a high school diploma or the equivalent may enroll in a public community college. In addition, once the student earns an Associate of Arts (A.A.) degree, he or she may transfer to the State University System without having to take any additional basic studies courses (unless they are prerequisites to the major program of study).

Do participants receive priority in their choice of a specific school?

No. Participants do not receive priority admission to their choice of state university.

What happens if the public university system is overcrowded at the time my beneficiary is ready to enroll?

The Florida Legislature has adopted policies to address state university enrollment. State universities are regarded as limited access institutions, compared to the open door policy that enables anyone with a high school diploma or the equivalent to enroll in a public community college. The Associate of Arts degree is automatically accepted for transfer to a state university, although the student may have to compete for admission for specific limited-access majors.

Summer School

May prepaid benefits be used during summer terms?

Prepaid tuition, local fees and tuition differential fees are measured in credit hours and may be used during any semester. Dormitory plans are not available for summer school because summer housing rates are significantly lower than the amount charged during the fall and spring semesters.

Taxes

Are there any tax benefits?

Earnings on qualified withdrawals are exempt from federal income tax and from State of Florida taxes. There are gift tax benefits, too.

Is a contract purchased through the program subject to gift tax?

To the extent that prepaid contracts exceed Federal limits on gifts, the contracts are subject to gift tax, but are allocable over a five-year period. For specific information regarding the gift tax consequences, please consult a professional tax consultant or certified public accountant.

Is a lump-sum payment tax deductible?

No. Payments to the Florida Prepaid College Plan are not tax deductible.

University Housing

What type of dormitory room is provided with a Florida Prepaid College Plan?

Each state university has specified a set of double-occupancy, air-conditioned rooms that will be allocated to prepaid beneficiaries, subject to availability.

What will happen if there is insufficient dormitory space to accommodate all students with Florida Prepaid dormitory contracts?

Students will receive a refund of their prepaid dormitory contract equal to the actual price of dormitory space at that time at the Florida state university that they are attending. The refund will be provided for two semesters so that it may be used to offset costs associated with off-campus housing.

Is the dormitory contract transferable to a privately-owned dormitory or apartment?

No. A refund may be requested for the amount paid for the dormitory contract.

Is the dormitory contract transferable for use at a fraternity or sorority house?

Yes, if the fraternity or sorority is university-held. The plan will transfer the funds for dormitory contracts to any eligible university-held residence designated by the university. The amount transferred may not exceed the cost of university dormitory fees covered by the plan at that university.

Is the dormitory contract transferable to community college-held residences?

Yes. The Plan will transfer funds to either a community college that directly operates one or more dormitory residences or to the community college direct-support organization (DSO) that operates dormitory residences. The Plan may pay the fees charged by the community college or DSO or the maximum fees charged for state university dormitory residence, whichever is less.

If I purchase a four-year university contract with a dormitory contract and then want to convert my plan to a "2+2" contract, may I transfer the dormitory contract to be used during the third and fourth years of the "2+2" contract?

Yes. The Florida Prepaid College Plan will transfer up to two years of prepaid dormitory expenses when a four-year, university plan is converted to a “2+2” plan. A refund is available for the amount paid for any additional years of the dormitory plan that have been prepaid.

Usage Related Communication

When a beneficiary is scheduled to start college, what documents will they receive?

First Time in College Letter - Dormitory: In October, Prepaid College Plan beneficiaries who are scheduled to start college in the Fall of the following year will receive information on how to use their dormitory benefits.

First Time in College Letter: In early February, Prepaid College Plan beneficiaries who are scheduled to start college in the Fall will receive a letter explaining what to expect as they begin the college enrollment process.

ID Card: In early February, Prepaid College Plan beneficiaries who are scheduled to start college in the Fall will receive a Prepaid College Plan identification card and a letter explaining what to expect as they begin the college enrollment process.

What documents will be sent on an annual basis for beneficiaries currently using their prepaid benefits?

1099 Tax Form: In preparation for the tax season, a 1099 tax form will be mailed in late January to beneficiaries who have used their plan benefits during the calendar year. The form will also be mailed to account owners who have received a scholarship refund or reimbursement during the calendar year. Please contact your tax advisor for assistance in completing this form.

Usage Statement: In mid February, Prepaid College Plan account owners will receive a Usage Statement reflecting an updated status of all benefits paid out, as well as the remaining balances of each account, effective December 31 of the previous calendar year.

ID Card: In early February, Prepaid College Plan beneficiaries who are scheduled to start college in the Fall or have matriculated will receive a Prepaid College Plan identification card.

How do I replace a lost ID card?

Please call Customer Service at 1-800-552-GRAD (4723) to request a new ID card.

Using Benefits

What universities and community colleges are covered?

All of Florida's 11 state universities and 28 community colleges (including the nine colleges granting baccalaureate degrees) are participating in the Florida Prepaid College Plan. The value of the tuition contract may also be transferred semester by semester to private in-state and out-of-state colleges that are eligible educational institutions under s. 529 of the Internal Revenue Code (i.e., the institution is eligible for federal student financial assistance). See Approved Colleges.

The beneficiary is starting college before his or her projected enrollment year. How do I activate program benefits?

The contract may be utilized up to three years prior to the projected enrollment date if the child graduates from high school early. The account owner must provide written notice to the program at least 180 days prior to the new matriculation date and bring the contract current at the time the date is advanced. Please call Customer Service at 1-800-552-4723 to activate the matriculation process.

The beneficiary is not starting college immediately after his or her high school graduation. What should I do?

You need not do a thing. The account stays current for 10 years from the date of graduation and may be extended by written request. The 10-year period is extended by time spent in active-duty military service. Program benefit depletion will not begin until the Program is billed by a postsecondary institution.

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