Caps the rate of return on accounts that are not used for college expenses
FRANKFORT, Ky. (April 15, 2014) – Kentucky is projected to save $20.1 million from changes to the state’s prepaid tuition plan under a bill signed into law by Gov. Steve Beshear.
The bill caps the rate of return on Kentucky Affordable Prepaid Tuition (KAPT) accounts that are not used for college expenses. It also sets 2028 as the last year a KAPT account can be used for any purpose.
“This is good legislation that protects current account owners,” Beshear said. “Students and their families are counting on this program to help pay for college, and this helps the state keep that promise.”
House Bill 279 was introduced by state Rep. Mike Denham of Maysville, and cosponsored by Reps. Rick Rand of Bedford, Jim DeCesare of Bowling Green, and Derrick Graham of Frankfort.
KAPT is administered by the Kentucky Higher Education Assistance Authority (KHEAA).
“We are very grateful for Representative Denham’s leadership on this bill,” said Dr. Carl Rollins, executive director of KHEAA. “Detailed information will be delivered to customers regarding program changes, but the vast majority of account owners will not notice any difference.”
The program was established by the General Assembly in 2000 but has not accepted new enrollments since 2004 because the cost of tuition has risen more quickly than fund growth.
Kentucky families can still save for college expenses with the Kentucky Education Savings Plan Trust, administered by KHEAA. For more information, visit kysaves.com.
KHEAA is the state agency that administers grant, scholarship and work-study programs to help Kentuckians pay for college.
To learn how to plan and prepare for higher education, go to gotocollege.ky.gov. For more information about Kentucky scholarships and grants, visit kheaa.com; write to KHEAA, P.O. Box 798, Frankfort, KY 40602; or call (800) 928-8926, ext. 6-7372.