10/5: Prepaid state college plans may not cover all costs

New York Times: Prepaid state college plans may not cover all costs

In the last year, the slump in the stock market and rising college costs have put all but two of the 18 prepaid college savings plans in the red.

South Carolina’s plan overseers have developed doomsday scenarios, capping how much a family would get if the program shut down completely.

Alabama closed its program to new enrollees because the fund lost almost half of its assets — more than $300 million — in the stock market in the last year, and the state might have to put its own money in to keep it solvent.

Between them, the 18 state funds serve nearly 1.6 million families and hold $23.8 billion in assets, ranging from Tennessee’s small $80 million fund serving 9,700 families to Florida’s massive $8.7 billion fund that serves about 850,000 families.

Also in the South:

ALABAMA: Military retirees stunned by 21% inpatient fee hike

ARKANSAS: Gov. Beebe responds to $55.8 million shortfall in revenue

FLORIDA: Gov. Crist gets bad media coverage lately

GEORGIA: State gets another blow in water wars as drinking water not considered in study

KENTUCKY: Gov. Beshear heads to China, Japan on trade mission

LOUISIANA: Autism numbers more prevalent than previously thought

MISSISSIPPI: Revenues down dramatically in September

NORTH CAROLINA: State asks for $5.3 billion for trains

SOUTH CAROLINA: Water Wars, Part Two: SC, NC battle over Catawba River

VIRGINIA: DNC to pump another $1 million into gubernatorial race

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