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Prepaid Affordable College Tuition (PACT) Program
Alabama's Prepaid Affordable College Tuition (PACT) Program has been closed to new enrollment since 2008. The program has offered a four-year package and one-year package covering tuition and fees at any Alabama public college or university, convertible to private and non-Alabama institutions based on a formula. Alabama also offers the CollegeCounts direct-sold and advisor-sold 529 savings plans.
- Program typePrepaid contract
- Enrollment periodNormal enrollment period is September through December. Closed to new enrollments as of 2009.
- State agencyBoard of Trustees of the Trust Fund, chaired by the State Treasurer
- Tax deduction
Ratings & Rankings
Our overall rating for non-residents
This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
State residency requirements:None
Who can be a participant/owner in the program?U.S. citizens and resident aliens at least 19 years old, UGMA/UTMA custodians, and approved legal entities.
Significant time or age restrictions imposed by the program:The beneficiary must be in the 9th grade or below and under the age of 18 at the time of enrollment. Contract benefits must generally be used within 10 years of the beneficiary's projected college entrance date.
Minimum contributions:UNLOCK PRO
Contract prices:In the last enrollment period (2008), the price for a four year contract ranged from $23,938 for a newborn to $25,650 for a ninth grader. The price for a one year contract ranged from $6,408 for a newborn to $6,856 for a ninth grader.
Available tuition packages:Contract pays one to four years of undergraduate tuition and fees at Alabama public colleges and universities.
Benefits for beneficiary attending private or out-of-state institution:Weighted average tuition and mandatory fees charged the prior fall by public four-year institutions in Alabama not to exceed actual tuition and mandatory fees.
Contract payment options:Lump sum, 60 monthly installments, or extended monthly payment plan. For contracts purchased during the 2008 enrollment period, the first payment was due February 1, 2009.
Are program benefits backed by the full faith and credit of the state?No
Are program benefits collateralized or guaranteed in any other way?No
Fees & Expenses
Enrollment or application fee:$100
Taxes and other Benefits
- Tax deduction for single filers$5,000/yr
- Tax deduction for joint filers$10,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.