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Tue March 30, 2010
Officials call out to prepaid tuition contract holders
By Scott Harvey
– State Representative for District 3 Mark Homer is calling out to residents who've purchased Texas prepaid tuition contracts.
Since privacy laws protect the list of families who purchased the contracts, Tomorrow Fund Families is asking state representatives for help in locating families who may have questions about their contracts.
Though the fund is currently solvent, it is projected to start running out of money as soon as 2015. In an effort to address the projected billion-dollar-plus budget shortfall, the Texas Prepaid Tuition Board voted last May to change the refund policy so that investors could only withdraw their principle investments. As a result, more than $110 million - between 7 to 7.5% of the fund's value - was withdrawn by investors.
The Board has since reversed the change, but had it remained in effect, investors would not have received earnings, no matter how long they had been in the program.
Tomorrow Fund Families, created by former Representatives Keith Oakley and Curtis Seidlits, feel strongly that any changes to the contracts should not be made without the advice and consent of contract holders.
Residents who may be affected by these changes, or you know someone who is, are encouraged to visit www.TomorrowFundFamilies.org for more information.