Illinois' prepaid tuition program has 30% funding gap, report says [View all]
By Ryan Haggerty
Chicago Tribune reporter
10:28 p.m. CST, December 13, 2011
The state's troubled prepaid college tuition program is about 30 percent short of the funding needed to meet its projected obligations, according to a report released this week.
The report, conducted by actuarial consultants Gabriel, Roeder, Smith & Co., shows that the College Illinois program had a deficit of almost $560 million as of March 31.
The program, launched in 1998, allows participants to buy contracts locking in today's prices for future tuition and fees at the state's public colleges. Recently, however, it has been heavily criticized for its investment strategy, slow sales and funding shortfall.
The state Student Assistance Commission, which oversees the program, stopped selling contracts Sept. 30.
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http://www.chicagotribune.com/news/local/ct-met-illinois-prepaid-college-tuition-1214-20111214,0,1794529.story
Just like pensions. Just wait until all those parents find out that their 'prepaid' plan only covers 2 years....
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