Prepaid Tuition Fund stays closed, changes terms on existing accounts

Due to the precarious financial status of the program, its administrator, the Colorado Student Obligatrion Bond Authority (CSOBA), has announced that the program will remain closed to new enrollments and contributions. Current participants face the choice of withdrawing from program before February 20, 2003 under its current terms or remaining in the program under revised terms.

Participants who remain in the program, but later request withdrawals before the first payout date specified in their contracts, will receive much less under the revised terms. For withdrawals after their first payout dates, account values will be determined based on either (1) current contract terms provided the Colorado Legislature agrees during its 2003 session to pay for future unfunded liabilities, or (2) amended contract terms that cap annual tuition increases to 5.5% if the Colorado Legislature fails to provide a financial commitment.
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