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PACT will run out of money in 2016 (Alabama's prepaid tuition)
NBC 13 News ^
| November 4, 2009
Posted on 11/04/2009 10:35:02 PM PST by UAConservative
Video of story of Alabama's prepaid college tuition program going insolvent in 2016.
http://www2.nbc13.com/vtm/news/local/article/pact_will_run_out_of_money_in_2016/106306/
TOPICS: Education
KEYWORDS: college
Sounds just like Social Security or Medicare.
To: UAConservative; 1-Eagle; 131st Scout; 2CAVTrooper; 65superhawk; 6Covs; A.P.M.; adkinsjohnnie; ...
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2
posted on
11/04/2009 10:44:43 PM PST
by
bamahead
(Avoid self-righteousness like the devil- nothing is so self-blinding. -- B.H. Liddell Hart)
To: UAConservative
I almost signed up for that program and for some reason decided to take another avenue.
I know many who did sign up and feel for all the families that will be left in the lurch.
To: carolina71
I looked at the 529 College Savings Plan (the PACT's sister program) and the funds offered by Van Kampen investments doesn't return anywhere near the tuition inflation rate. Whoever enters these funds will get hosed really bad.
Sadly, the best thing that can be done is for the state to let PACT fail. Since people had paid "premiums" and not invested, Alabama would return the prepaid money with interest over the next twenty years just as if it was a bond. I don't see any other way out of it other than declare the fund in default.
4
posted on
11/04/2009 11:49:12 PM PST
by
UAConservative
(Alabama PACT, Medicaid, Medicare, Social Security... government can't run anything right!)
To: carolina71
I looked at the 529 College Savings Plan (the PACT's sister program) and the funds offered by Van Kampen investments doesn't return anywhere near the tuition inflation rate. Whoever enters these funds will get hosed really bad.
Sadly, the best thing that can be done is for the state to let PACT fail. Since people had paid "premiums" and not invested, Alabama would return the prepaid money with interest over the next twenty years just as if it was a bond. I don't see any other way out of it other than declare the fund in default.
5
posted on
11/04/2009 11:49:12 PM PST
by
UAConservative
(Alabama PACT, Medicaid, Medicare, Social Security... government can't run anything right!)
To: carolina71
I looked at the 529 College Savings Plan (the PACT's sister program) and the funds offered by Van Kampen investments doesn't return anywhere near the tuition inflation rate. Whoever enters these funds will get hosed really bad.
Sadly, the best thing that can be done is for the state to let PACT fail. Since people had paid "premiums" and not invested, Alabama would return the prepaid money with interest over the next twenty years just as if it was a bond. I don't see any other way out of it other than declare the fund in default.
6
posted on
11/04/2009 11:49:12 PM PST
by
UAConservative
(Alabama PACT, Medicaid, Medicare, Social Security... government can't run anything right!)
To: carolina71
Same here, didn’t join. But my sister-in-law and some very good friends did, and it makes me mad for them!
7
posted on
11/05/2009 4:06:51 AM PST
by
EmilyGeiger
(The problem with socialism, is eventually you run out of other people's money. Margaret Thatcher)
To: carolina71
Same here. My wife pushed for us to do it but the due diligence showed that the numbers didn't fit. I hope I don't end up paying for others investment mistake through higher taxes!
8
posted on
11/05/2009 5:45:17 AM PST
by
Free_in_Alabama
(The average citizen is to lazy to steal from you, instead they are asking the government to do it)
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