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State Treasurer and PACT Board Chair, Young Boozer, announced that directors of the Alabama Prepaid Affordable College Tuition (“PACT”) Program approved a 4 percent increase to the current rate paid by the PACT Program for tuition and fees at its board meeting held May 14, 2024. This marks the tenth consecutive increase in benefits since the Class Action Settlement Agreement was approved and will be effective fall semester 2024.
Under the 2011 Class Action Settlement Agreement, PACT was required to pay tuition and qualified fees at the fall 2010 rates as certified by each respective Alabama public eligible educational institution. The agreement was negotiated to allow for an increase in benefit payments if the actuarial condition of the PACT program improved. In all cases, the PACT Program pays the lesser of the school’s tuition and mandatory fees or the 2010 tuition rates as adjusted annually by the Board.
Most four-year Alabama schools are currently receiving the full cost of tuition and mandatory fees due to the increases granted by the Board over previous years. All two-year Alabama schools currently receive full tuition and mandatory fees from the PACT Program.
The PACT Program originally sold 76,251 contracts dating back to 1990 and now has less than 6,000 active contracts.
