AUSTIN, Texas (AP) - A fund offering Texas parents a guaranteed rate on their children's college tuition is about to go broke.
The Texas Tomorrow Fund was offered between 1996 and 2003, before being changed and renamed. The plan allowed parents of young children to prepay tuition at guaranteed rates regardless of how much costs went up before their children started college.
The problem is that deregulation sent prices skyrocketing, meaning the fund will need a supplement from taxpayers.
Comptroller Susan Combs said the fund is nearly broke now. That means the state Legislature will have to find a way to plug a gap that could reach $2.1 billion.
Information from: Houston Chronicle:
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