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If you purchased a PrePaid College Plan since 2008, you will soon see a refund or a lower monthly payment. The reduction is possible because lawmakers stopped allowing university boards the power to impose 15 percent a year tuition hikes. As a result,  purchasing a new plan after October will be significantly cheaper.Pre paid plans are considered risk free, but if you cancel the plan, you don’t receive andy interest. Some advisors says other types of investment plans are a better deal for the money.

As State funding for colleges dried up during the recession, each University was allowed to raise their local or differential tuition up to 15 percent a year. The move doubled the cost of a pre paid plan.

But a vote today by the Prepaid College Foundation Board  returned contract prices to the 2007 level. The board’s chairman, Duane Ottenstroer, calls the move historic.

“When you reduce the price to the families in Florida from $55,000 down to $27,000 for a four year contract, that’s historical” says Ottenstroer.

Families with a plan don’t have to do anything. They will hear in late September if they are getting a refund or a reduced rate. Executive Director Kevin Thompson says college will now be more affordable. “The people who want to buy in the future will be buying at much lower prices. Almost fifty percent less for our most popular plans” says Thompson.

And for students like biochemistry junior Abby Cullen, prepaid has made all the difference. She says “It meant that I could come to college, so it’s really important for me to have it.”

When enrollment opens in October, the price for a new born will be half of what it was last year. Also in October, the board is rolling out a new plan. Families will be able to buy just one year of college for as low as 45 dollars a month. Pre Paid Spokesperson

Shannon Colavecchio says families can share the cost. “You as the parents can take on a year. Maybe gramma and grandpa take on a year. Maybe a favorite aunt and uncle take on a year.”

Lower payments will show up in September’s billing. Refund checks will go in the mail in late October.

Pre paid plans are considered risk free, but if you cancel the plan, you don’t receive andy interest. Some advisors says other types of investment plans are a better deal for the money.