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Thousands Bailing Out of Prepaid Tuition Plan Prompts Review

7,000 investors have bailed out of the program since August

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    TK
    AP
    7,000 investors have bailed out of the progam since August.

     

    The state's prepaid college tuition plan will face a financial review during the 2011 Legislature after thousands dropped the program.

    The state comptroller's office says about 7,000 investors left the Texas Guaranteed Tuition Plan since August, when the state announced a now-defunct plan to cut refunds.

    Agency spokesman R.J. DeSilva says about $110 million was withdrawn, equal to slightly more than 7 percent of the fund's value, which topped $1.4 billion as of Oct. 31.

    The Texas Prepaid Higher Education Tuition Board on Nov. 5 decided to cancel new rules that would have cut the value of refunds, amid shortfall projections.

    State Rep. Richard Pena Raymond of Laredo, vice chairman of the Texas House Appropriations Committee, said Thursday the panel will review the tuition plan. Recommendations will to the 2011 Legislature.