DO I HAVE TO LIVE IN FLORIDA?
The account owner does not have to live in Florida to purchase a Florida Prepaid
College Plan, but the beneficiary (student) or the parent/guardian of the beneficiary
must have been a Florida resident for the last 12 consecutive months. You
must submit proof of Florida residency with your application.
The account owner and the beneficiary may live in any state.
CAN TWO PEOPLE JOINTLY OPEN AN ACCOUNT?
Prepaid Plan and Savings Plan:
Each account must have one person who is designated as the account owner; a second person
may be designated the survivor for any account. Anyone may make contributions to an
account. All changes of the account owner, survivor or beneficiary, termination of an
account and requests for refunds must be authorized jointly by the account owner and
survivor, for all Prepaid Plan accounts (including any corresponding dormitory account)
and 529 Savings Plan accounts, established on or after February 1, 2009. A different
account owner and a different survivor may be listed on a Florida Prepaid College Plan
and on a Florida 529 Savings Plan for the same beneficiary (student).
CAN I OPEN MORE THAN ONE ACCOUNT FOR THE SAME CHILD?
The Prepaid Plan and any associated dormitory plan for the same child must have
the same owner.
Different account owners may open separate accounts for the same child. For
example, a parent and a grandparent may both open separate Florida 529 Savings
Plan accounts for the same beneficiary.
WHAT IF MY CHILD GOES TO AN OUT-OF-STATE OR A PRIVATE COLLEGE?
The beneficiary may use their Florida Prepaid College Plan benefits at any private
or out-of-state college or technical school that is an eligible educational institution
by simply completing a transfer form. The Board will transfer an amount that
is equal to the average rates payable to Florida state universities and colleges
in Florida under your beneficiary’s plan.
The funds in a Florida 529 Savings Plan may be used at any private or out-of-state
colleges and universities that are eligible educational institutions.
WHAT ROOM AND BOARD EXPENSES ARE COVERED?
The Florida Prepaid dormitory plan covers payment for a standard, double-occupancy,
air-conditioned dormitory room at a state university. The Plan may be applied
to other university-held housing, including some fraternity and sorority housing.
Not all dorms are offered. Private dorms are not covered. Rooms are
assigned on a first-come, first-serve basis, so there is no guarantee that the student
will receive a room assignment. If the student applies for housing but does
not get a room assignment, the account owner may request an unavailable dormitory
refund. The Florida Prepaid dormitory plan cannot be used for summer terms,
and does not cover meal plans or other food expenses.
The student must be enrolled at least half-time at a qualified college or university
for room and board to be considered a qualified expense. For students living
off campus, the qualified room and board amount is the cost of attendance allowance
for federal financial aid purposes at the college of choice. For students
living on campus, the qualified room and board amount is the actual amount charged
by the college.
WHAT IF THE STUDENT RECEIVES A SCHOLARSHIP OR DELAYS ENROLLING IN COLLEGE?
If your child earns a scholarship, such as Florida Bright Futures, you still can use the full value of the Florida
Prepaid College Plan. The combination of the scholarship and the Prepaid Plan may cover more fully the student's
college expenses. Your alternatives are to request a scholarship refund or transfer the Prepaid Plan to another
family member. The expected matriculation year of the new beneficiary must fall within or before the original
beneficiary's benefits period. The original beneficiary has 10 years from the projected college enrollment year to
use the plan benefits. An extension of benefits may be requested one year before expiration; however, the Florida
Prepaid College Board does not guarantee approval of an extension request. Factors the Florida Prepaid College
Board considers include, but are not limited to, the time spent by a beneficiary as an active duty member of the
U.S. Armed Services, prior extensions, recent plan usage, and medical hardships.
If your child earns a scholarship, the 529 Savings Plan may be used for other qualified
higher education expenses not covered by the scholarship. A savings account
will not be terminated unless there have been no contributions or withdrawals for
25 years-and that time period can be extended upon request. The time a beneficiary
spends on active military duty is not included in the 25-year limit. The account
also may be transferred to another beneficiary.
IS THE STUDENT GUARANTEED ADMISSION TO COLLEGE?
Prepaid Plan and Savings Plan:
No. The Plans do not guarantee admission to any college or university.
WHAT IF THE STUDENT DOES NOT GO TO COLLEGE, OR I CHANGE MY MIND?
You may transfer the Florida Prepaid College Plan to another qualified family member who meets the Florida residency requirements at the time of substitution. The expected matriculation year of the new beneficiary must fall within or before the original beneficiary’s benefits period. You may be required to make a supplemental payment if the projected matriculation year of the new beneficiary is more than three years before or after the projected college enrollment year of the original beneficiary. You may also cancel the plan and receive a refund. The Board will assess a cancellation fee of up to $50.00 if you have had your plan for less than two (2) years.
You may transfer the Florida 529 Savings Plan to another qualified family
member, or you may cancel the Plan and withdraw all of the money in the account.
There is a $50 cancellation fee, and certain tax consequences may apply. For
more information, refer to the Florida 529 Savings Plan Disclosure Statement and
WHAT DOES IT MEAN IF AN INVESTMENT OPTION IS PASSIVELY OR ACTIVELY MANAGED?
Passive management is the opposite of active management. Passive management is a style of investment management where a fund or portfolio mirrors a market index and does not use individual judgment to make investment decisions. Active management is a style of investment management where a portfolio manager relies on their own informed judgment and experience to decide on which securities to buy, hold or sell.