ALABAMA PRE-PAID AFFORDABLE COLLEGE TUITION (PACT) PLAN

ALABAMA PRE-PAID AFFORDABLE COLLEGE TUITION (PACT) PLAN

 In a staggering blow to the hard working and trusting citizens of Alabama, the Alabama Pre-paid Affordable College Tuition Plan (PACT) has announced that it is likely to be unable to fund tuition for its beneficiaries who purchased a “guaranteed” plan.  The Trustees of the PACT fund, led by State Treasurer Kay Ivey, has lost more than $350 million and is now is attempting to dodge State responsibility for paying tuition for the thousands of families that have bought into the PACT program.  We believe the PACT program is an agency and instrumentality of the State of Alabama and is responsible for its contractual obligation under the PACT contract. We have consulted a finance expert who agrees that the PACT contracts failed to identify any market risk or that the PACT contract was an investment in the stock market as required by law.  PACT contract owners have significant legal rights they may wish to protect as soon as possible.

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2 thoughts on “ALABAMA PRE-PAID AFFORDABLE COLLEGE TUITION (PACT) PLAN

  1. Yes , my first contract had the word guarantee in it . The second did not . The crime is those that invested in the last 2 years get all their money back [ great risk profile] but those of us that have an 18 year old contract get no appreciation . My other stock investments from the same time frame are up 250% but in last 2 years down 60 . Why cant I get all my appreciation and those that just invested lose like we all have . Sucks

  2. Brian, Windy and I are clients of yours. Regarding PACT, we purchased programs for both of our kids. while our son has graduated, we fear our daughter’s funds will be reduced or eliminated. When purchased, we were told these accounts were backed by the State of Alabama. The wording led us to believe this was a “full faith and credit” commitment. We believe we have been fooled…and we don’t like it. Regards, John Whitley

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