Gov. Ron DeSantis speaks during a press conference in Orlando highlighting the Florida Prepaid College Plan on Sept. 16, 2024. (Screenshot via the governor’s X livestream.)
More than $130 million in refunds remain for Florida Prepaid College Plan families following years of unchanged in-state higher education tuition, Gov. Ron DeSantis announced Monday.
According to DeSantis, the government has issued $850 million in refunds, and more than $130 million remain unclaimed.
The governor was joined by Education Commissioner Manny Diaz Jr., State University System Chancellor Ray Rodrigues, and Florida Prepaid College Board Chairman John Rood during a news conference at an elementary school in Orlando to tout the program and the nation’s lowest tuition.
Approximately 40,000 families have not claimed their refunds, Rood said.
“Our staff is working tirelessly to try to get this money out to the policyholders,” Rood said. “They’ll never lose it. When they come to use the money when their child’s about to go to college, they’ll then reach out to us and we’ll be able to, you know, square it up. But we would like to do it as soon as possible so they can convert to a 529 or use that money for some other purpose that’s important to them.”
He referred to a form of tax-free account for educational spending.
Average refunds per family since 2020 have ranged from approximately $2,500 to $4,500, according to DeSantis.
“That’s just going basically right into your pocket, so you continue to get the benefits, but then you get the money back,” DeSantis said of the refunds. “What other state would be sending you money back?”
In January, the Florida Prepaid College Board reduced contribution levels for the program while maintaining coverage. The reduction was for plans purchased since 2008 from which families have not begun withdrawing funds.
Three factors contributing to lower costs, according to the Florida Prepaid program, are current college costs, assumptions about future college costs, and investment returns. Any payments families have made in excess of the estimates are available for rebate.
“Due to continued years of lower than anticipated tuition and fee increases, the Board determined that it was possible to incorporate recent tuition and fee experience to lower certain Prepaid Plan prices,” according to the website issuing the refunds. “Please note that the Board will never increase the cost of your existing Plan(s).”
Florida public universities have charged the same tuition and fees since the 2024-2015 college year. According to the Education Data Initiative, nationally, public four-year institutions have increased tuition by 36.7% since 2010.
“When there’s more money in the kitty, it’s going back to you in your pockets,” DeSantis said. “This is not money that is going to be squandered. And I can guarantee you this, you know, as long as I’m kicking and screaming, we’re going to hold the line on tuition at our state colleges and universities.”
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Families curious about availability of a refund may visit myfloridaprepaid.com/lowprices for further details.
“If you have a plan and you haven’t claimed your refund, log on to your account, check it out, because you may have a couple thousand dollars coming your way,” DeSantis said.
Families with money available may be refunded the excess amount or move it to a different 529 savings plan.
Families who enroll a student in the program before Oct. 28 will get a $50 gift card.
“There is no better deal in the country right now than to make an investment in Florida Prepaid for your child, and so I encourage everyone to do so,” Rodrigues said.
Each player on the Lake Mary Little League World Series champion team was awarded a two-year prepaid plan during their trip to the governor’s mansion and Florida State University’s Doak Campbell stadium over the weekend, DeSantis said.
What is the program?
The state has been selling the prepaid college plan since 1988, an initiative of Stanley Tate, a Republican donor for whom the program is named. Tate died in July.
Families can invest in a prepaid plan, which has fixed payments and can be applied to tuition at Florida colleges and universities or out-of-state schools, as well as trade schools. The program can be cashed out or used by other family members if it goes unused by the designee, including if they qualify for the merit-based Bright Futures Scholarship.
In the prepaid plan, tuition is locked in on the date it is purchased.
The state offers a savings plan, too, which allows contributors to invest whenever they have money to spare.
Both versions are 529 accounts, or tax-free accounts for educational expenses.
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