New Law To Drop Costs Of Florida Prepaid

MIAMI (CBSMiami) -- A new law may mean savings on college education for those using the Florida Prepaid College Plan.

House Bill 851 was signed into law this week by Florida Governor Rick Scott.

Board Chairman Duane Ottenstroer said in a statement released Wednesday, "Because of this law, the prices of university Prepaid Plans will be significantly reduced, helping more Florida families save for their children's higher education."

The law will bring down prices for the 4-Year Florida University Plan and 2 + 2 Florida Plan.

According to the governor's office, the lump sum price of the 4-Year Florida University Plan for a newborn is expected to drop nearly $20,000 from its current price of $54,000.Monthly payments for the same plan are expected to drop at least $100 from its current price of $350.

The price drops aren't just for future prepaid plans.

Fifty-thousand existing pre-paid plans are expected to see refunds or payment reductions due to the new law. That includes those who have the 4-Year Florida University Plans and 2 + 2 Florida Plans purchased from 2011 to 2014 plus the Tuition Differential Fee Plans purchased from 2008 to 2014.

Those who are eligible can expect to get a notification in September regarding the changes.

Payment reductions are set to be applied to prepaid plan payments starting September 20th. Refund checks are expected to be processed and mailed within four to six weeks from there.

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