College debt is trending back in the wrong direction and according to a recent Education Data Initiative report, in 2024, the annual growth of college debt resumed following year-over-year declines that began in 2023. The current student loan debt in the U.S. totals more than $1.7 trillion.
But one plan that has been helping families cover the cost is Florida Prepaid. The state-backed college savings program is one of the few such plans in the nation, dedicated to helping Florida families more affordably save for college by “pre-paying” the future costs of college today. The result is manageable monthly payments for the family and the guarantee that their plan will be ready to use once their kids reach college. The flexible plans can be used in-state, out-of-state, and at public, private, or technical schools.
This Open Enrollment season began on February 1. Now families with newborns can start saving for college for just $29/month with a 1-Year University Plan, the Florida Prepaid College Board announced.
This year families with babies are eligible for a special incentive that lowers newborn plan prices and is part of Florida Prepaid’s mission to help families save for college stress-free by starting early with affordable, fixed monthly payments. The reduced prices result in savings of up to $850 per plan for a 1-Year University Plan – up to $3,400 in savings for four years.
“When you are navigating those first months as a parent, college might seem far off. But we want families to start saving early because we know this is the most affordable time to do so, and it really reduces financial stress long-term,” said Board Chairman John D. Rood. “This year’s pricing for newborns reflects our commitment to bringing college within reach for as many Florida families as possible.”
Families can view this year’s special low prices in the Prepaid Plan online pricing calculator to determine what the various plans cost based on a child’s age. Monthly Prepaid Plan prices are the lowest when the child is the youngest, allowing families to spread out the cost of college over time in fixed payments that families can incorporate into their monthly budget.
The 1-Year University Plan covering 30 credit hours is the most affordable and can be “stacked” over time to cover additional years. It’s a simple way to create a solid foundation for your child’s future. You can save for just one or two years or all four years as best fits your savings goals and budget.
If a child attends an out-of-state college or private college, a Prepaid Plan will pay the same amount as it would pay at a public college or university in Florida. Every Prepaid Plan is protected by the State of Florida, and a child has up to 10 years after high school graduation to use the plan. Plus, if the family moves out of state, the child can return to a Florida public college or university, and their Prepaid Plan qualifies them as an in-state student.
“There has never been a better time for families to start saving early for a child’s future,” said Kevin Thompson, Executive Director of Florida Prepaid. “What a gift to be able to secure your child’s future for just $29 a month. It is a small step, but it has a lifelong impact and brings so much opportunity.”
The state of college debut: Florida owes the third-highest amount at $105 billion from more than 2.7 million borrowers. Florida borrowers owe an average of $38,857. And According to Pew Research, a quarter of college graduates ages 25 to 39 with loans say they are either finding it difficult to get by financially or are just getting by, compared with 9 percent of those without loans.
To learn more, families can visit myfloridaprepaid.com. Open Enrollment ends April 30, 2025.
