Changes to Mississippi's college savings program - WDAM - TV 7 - News, Weather and Sports

Mississippi's college savings program undergoing changes

Posted: Updated:
JACKSON, MS (Mississippi News Now) -

The state's pre-paid college tuition program is at a stand-still. MPACT or Mississippi Prepaid Affordable College Tuition allows parents to lock in college tuition rates early and not have to pay for any tuition hikes later on.

A recent audit of the program raised multiple financial concerns and put the College Savings Board on notice that changes had to happen to keep the program going.

"It laid out a roadmap on how we can work through the issues," said State Treasurer Lynn Fitch. "Look at investments, our debt allocation and how to make this fund sustainable and then also how we look at other opportunities as we move forward."

Since the audit presentation on April 30th, committees met to focus on MPACT's future. While there's currently a freeze on new enrollees to the program, the board has started taking steps to bring it back to life.

"There's been a lot of careful and considered study about how to make the MPACT plan sustainable," said incoming board member Cory Wilson. "How to make it so the state can afford it, as well as deliver on the promises we've made to Mississippi school kids."

Those currently enrolled in the program will have their investments honored. But two of the committees recommended a change. And the full board approved to lower the assumed rate of return from 7.3% to 7.0%.

"The changes will just be truly investment. How we switch our investment. How we look at where we invest and we allocate our debt," described Fitch. 

Bottom line, the college savings program still has a future. It will just be restructured.

"It may not be exactly like it is but certainly how we can make progress to open it sometime in the future," said Fitch.

And the board still has questions they're researching before pressing play again.

"Do you do a full tuition plan or do you do by the semester plan or possibly by the hour," said Fitch.

No timeline has been set on when the enrollment may re-open.

There is another program called MACS or Mississippi Affordable College Savings. The state treasurer's office tells us that program is not affected by the current changes.

Copyright 2013 MSNewsNow. All rights reserved.

  • LOCALLOCALMore>>

  • Hattiesburg, Laurel mayors smack talk before "Little Brown Jug" game

    Hattiesburg, Laurel mayors smack talk before "Little Brown Jug" game

    Thursday, August 28 2014 11:40 PM EDT2014-08-29 03:40:58 GMT
    Hattiesburg Mayor Johnny DuPree and Laurel Mayor Johnny Magee have a verbal throw-down about the upcoming Hattiesburg Tigers v. Laurel Tornadoes game this Friday. DuPree: "Well, I think it means moreMore >>
    Hattiesburg Mayor Johnny DuPree and Laurel Mayor Johnny Magee have a verbal throw-down about the upcoming Hattiesburg Tigers v. Laurel Tornadoes game this Friday.More >>
  • 14 School districts suing state over MAEP funding

    14 School districts suing state over MAEP funding

    Thursday, August 28 2014 9:21 PM EDT2014-08-29 01:21:47 GMT
    HATTIESBURG, MS (WDAM) - 14 school districts, including Hattiesburg, Richton, Smith County and Wayne County, have filed a lawsuit against the State of Mississippi, asking for funds they say are owed toMore >>
    14 school districts, including Hattiesburg, Richton, Smith County and Wayne County, have filed a lawsuit against the State of Mississippi, asking for funds they say are owed to them under the Mississippi Adequate Education Program (MAEP).More >>
  • Two teenagers charged with murdering a Moselle man

    Two teenagers charged with murdering a Moselle man

    Thursday, August 28 2014 8:04 PM EDT2014-08-29 00:04:37 GMT
    According to the Jones County Sheriff's Department, two 17-year-olds have been charged with murder for the death of Timothy Brian Williamson, 44. Deputies received a call Wednesday night about a fightMore >>
    According to the Jones County Sheriff's Department, two 17-year olds have been charged with murder for the death of Timothy Brian Williamson, 44.More >>