Consultant Warns of Prepaid Tuition Shortfall

By: The Associated Press
By: The Associated Press

Daniel Sherman, a consulting actuary in Boston with Buck Consultants, said the program as of Sept. 30 was $269 million short of being fully funded. Buck Consultants is the program's actuarial firm.

Sherman told board members that if nothing is done, he estimates the program will not have enough money to pay estimated tuition costs starting in the 2016 fiscal year, which begins Oct. 1, 2015.

Sherman said unexpectedly high tuition hikes and the change in assumed future tuition increases account for most of the shortfall.

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  • by James Location: Meridian on Dec 4, 2010 at 05:31 PM
    This is why states do not need to get involved in investment programs for private individuals. People need to learn how to save money themselves.
  • by Anonymous on Dec 2, 2010 at 04:01 PM
    OMG every state years ago that tried this Ran from it because of the problems 89% is based on stocks and interest rates and the prevention that every person in that state was going to jump on the idea.. Cal & NY are the only two states that held on to it rather then sending back the money and both are about to file Chap 13... dont understand people you see a failure and you turn and think you can make it work. there is no bottom in the buck to hold water.. is why it is in the trash... oh is ok i can use it for water will stay in it even with no bottom ... JDL
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