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Troy to waive tuition jumps for PACT
PACT students to get tuition increase waivers
Published Thursday, March 12, 2009
They didn’t start the problem, but Troy University officials are working hard to at least make a dent.
After Alabama’s Prepaid Affordable College Tuition (PACT) program announced it might not be able to guarantee the full tuition costs that those paying into it have expected, Troy’s Board of Trustees agreed Wednesday to waive any tuition increases for just those students during the next three years. This comes after PACT has lost 48 percent of values since 2007.
“There are parents, grandparents, relatives all over the state who purchased a contract with the understanding tuition and fees would be guaranteed when their loved ones were ready for college and that tuition and fees would be taken care of by the PACT program,” said Troy University Chancellor Jack Hawkins, Jr.
“As educators in Alabama, we need to pursue a solution based upon that concern for students and those who subscribed to the program.”
So, for the next three years, students in PACT at Troy University will pay tuition based on this year’s rates, despite any increases the school may incur.
Hawkins said he anticipates this to come at a cost greater than $2.5 million to Troy University.
In time when proration is taking its toll on schools across the state, Hawkins said this will just become an extra burden the school will carry for the next few years.
“We don’t have any extra cash lying around. This will just be taken off our bottom line,” Hawkins said.
“We know it needs to be done, and this will just be one of those sacrifices.”
And in tight economic conditions, Hawkins said tuition increases are something the university can’t help but to consider.
“In our view of what has happened, we don’t have a choice but to consider that,” Hawkins said.
Though tuition at Troy University remains now about 80 percent of the state average or around $5,400, students still could be looking at jumps in coming years, and those not on the PACT program will be paying at those increased rates.
“We don’t want to be fair to one group of students and unfair to another,” Hawkins said. “When the general public is believing tuition is guaranteed by this program…we wanted to offer what would be some relief to that portion of students.
“I don’t think it’s necessarily a fair comparison because if students haven’t done PACT, then they’re not assuming their tuition is held.” Troy University is the first and only of Alabama’s universities to agree to the proposal requested by PACT so far.
“Some others said the problem is not theirs and declined to do what the PACT board has asked,” Hawkins said.
The waived fee increases will take effect in fall 2009 and last until spring 2012.
*The Associated Press contributed to this report.
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Comments
Posted by shiftingshadows (anonymous) on March 13, 2009 at 2:30 a.m. (Suggest removal)
this is good, thanks hawkins!
Posted by Observer22 (anonymous) on March 13, 2009 at 6:49 a.m. (Suggest removal)
Now those whose economic circumstances prevented them from buying a PACT contract will get the double-whammy, having to work their own way through college AND having to make up the difference for those who had money and invested it poorly by investing in PACT.
Troy State will claim to be eating the difference but watch the back door of "revenue enhancement". Instead of raising tuition they will raise fees.
Posted by TroyAlumna (anonymous) on March 13, 2009 at 8:38 a.m. (Suggest removal)
"Invested it poorly"....I'm sure that that's what parents were thinking when they invested in their child's future education.
Posted by Ramsey (anonymous) on March 13, 2009 at 9 a.m. (Suggest removal)
@Observer22
I invested in PACT and it paid for my child's education and she completed her degree within the confines of the program. Others who invested got caught in the bad fiscal times that our country has been experiencing, but it wasn't their investing it was the PACT board. Additionally, there was a defacto expectation that because the state was behind it, that it was "safe".
I commend the Troy Board of Trustees for their plan to honor the PACT.
Posted by patriot (anonymous) on March 13, 2009 at 9:44 a.m. (Suggest removal)
The contract that I have states the PACT program "guarantees" payment of tuition...this was changed on later contracts.
Posted by bdhs4 (anonymous) on March 13, 2009 at 3:49 p.m. (Suggest removal)
So, I guess they can do that. Change the contract?
Posted by henrimasters (anonymous) on March 13, 2009 at 9:34 p.m. (Suggest removal)
When is the deadline for submitting applications and required paperwork for the election? We have gone for 20 years without having weekly articles about the University and good deeds by the administrative decisions there. And Troll does not think JH would use his position for benefit? Right!
Posted by Observer22 (anonymous) on March 14, 2009 at 11:02 a.m. (Suggest removal)
They might not have been thinking it was a poor investment - but then, who intentionally makes a poor investment?
The combination of the state and state colleges being involved should have been big red flags to warn people they were about to be skinned. Remember the legislature is behind both and who would invest money with that crowd?
Ramsey - you got yours - you got in early and were able to cash out - but the others who got in later will be soaked - - sounds a little like a Ponzi scheme.
Troy State will waive increases only for those who had PACT contracts but will make up the difference by even more increases for those who did not and by increasing all those lovely fees for everyone. Then they will go to the legislature and whine for more money to be transferred from public eduction to colleges claiming they need it to cover their expenses for waiving tuition increases but without mentioning a $300,000 garden at the Furher's mansion or the four-story parking deck for the football department.
Posted by FootballFan17 (anonymous) on March 14, 2009 at 1:06 p.m. (Suggest removal)
Observer, why do you hate Troy University? If it weren't for the University, the city of Troy would be like Banks.
Posted by henrimasters (anonymous) on March 14, 2009 at 9:38 p.m. (Suggest removal)
FF17 - I don't think Observer hates Troy University. I think he has a grind with the Chancellor as I do. He probably is at every game pulling for the Trojans just like me.
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