PA’s Prepaid Tuition Program Under Fire
State Treasurer Robert McCord announced yesterday he is delaying increased premiums on Pennsylvania’s Guaranteed Savings Plan, which allows parents to purchase college tuition credits at current prices and redeem them when their student enters college.
The program, which currently has over 89,000 enrollments and a $1.1 billion dollar budget, is facing a deficit of over $222 million dollars due to lower than expected returns.
Chairman of the Senate Education Committee, Sen. Jeff Piccola (R-15), released a subsequent statement calling for exhaustive reforms of the Tuition Savings Plan. “There is absolutely no way the taxpayers of this Commonwealth can be responsible for any deficit this program may incur,” Piccola remarked.