Press Release: Record Number of Families Saving Early with Florida Prepaid College Plans

As Prepaid Plan sales reach levels not seen since 2010, Florida Prepaid Scholarship Program promotes the importance of saving for college and will award 1-Year Florida University Plans to 10 families

Tallahassee, FL – More than 32,000 Florida Prepaid Plans have already been purchased from the Florida Prepaid College Board at prices not seen in years, and just over three weeks remain for additional families to get an early start on college savings. Open Enrollment runs through Feb. 28, 2015.

Since Open Enrollment began on Oct. 15, 2014, a total of 32,080 plans have been sold. This amount is more than double the 15,803 plans sold during all of Open Enrollment last year.

“We are thrilled to see so many families taking advantage of our affordable plan prices and giving the gift of a college education,” said Board Chairman Duane Ottenstroer. “These sales numbers are a heartening affirmation of the importance of Florida Prepaid’s mission to make college savings accessible and attainable to all Floridians”

The increase in Prepaid Plan sales comes as the Florida Prepaid College Foundation works to increase awareness of college savings options by offering a sweepstakes in which 10 families will each win a 1-Year Florida University Plan scholarship worth approximately $7,000. Now through Feb. 18, families can enter the Florida Prepaid Scholarship Sweepstakes by registering at http://www.floridaprepaidscholarshipprogram.com/. There, registrants can obtain additional entries daily by completing various activities and answering questions related to college savings. Ten winners will be randomly selected on February 19.

The 1-Year Florida University Plan, newly introduced this Open Enrollment period, starts as low as $43 per month and covers 30 university credit hours. The plan is meant to allow families to save for college gradually in a way that is more affordable, and to allow relatives to share in the cost of a child’s college education by each purchasing one of the four years needed to earn a degree.

Also this Open Enrollment period, prices of the most popular Prepaid Plans are being offered at almost half the cost of last year’s prices due to a new state law that helps control future fee increases at state universities in Florida.

As of 1/27/2015:

Overall Statistics as of 1/27/2015

  • Total Prepaid Plan sales are already 203% of last year’s total sales during the entire 2013-2014 Open Enrollment Period.  2013-2014 = 15,803; 2014-2015 through Jan. 27 – 32,080
  • Nearly 3,200 Prepaid Plans were purchased on the first day of Open Enrollment alone.

Comparing First 15 Weeks

  • Total Prepaid Plan sales were up 277% over the first 15 weeks last year.

2013-2014 = 8,506; 2014-2015 = 32,080

  • Total Prepaid Plan sales were up 172% over average of last three years.

Average 2011-2012 through 2013-2014 = 11,814; 2014-2015 = 32,080

The first payments on plans purchased this Open Enrollment period aren’t due until April 2015.

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About the Florida Prepaid College Board

The Florida Prepaid College Board manages the Stanley G. Tate Florida Prepaid College Program and the Florida 529 Savings Plan. Both are tax-favored 529 college savings plans authorized by Section 529 of the Internal Revenue Code. In 1987 the Florida Prepaid College Program was created by the Florida Legislature and the commitment and dedication of Mr. Stanley G. Tate to provide Florida families with an affordable means to save for their children’s future college education. The first Florida Prepaid College Plans were sold in 1988, and were augmented with the addition of the Florida 529 Savings Plan in 2002. Florida Prepaid is the largest, longest running and most successful prepaid plan in the nation with more than 1.6 million Florida Prepaid College Plans purchased and more than $6.7 billion invested in Prepaid Plans by Florida families. The 529 Savings Plan has more than 35,000 active accounts with a market value of more than $375 million.