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Alabama's Prepaid Affordable College Tuition Program, commonly known as PACT, is operated as a division of State Treasurer Lucy Baxley's office.
There are many ways for parents to plan and save for future college costs. PACT offers the opportunity to invest in a state sponsored, non-profit trust fund dedicated solely to the use of the participants. A contract is purchased and payments are deposited directly into the trust fund to be invested. When the child for whom the contract was purchased reaches college age, payment of Alabama's public tuition and mandatory fees, or an amount equal to these charges is made to the college or university of your choice. Having a PACT contract will ensure that a major portion of college cost is covered.
IRS regulations now permit benefits received from this program to be applied to college costs other than tuition and mandatory fees. This is very important in instances where a student might have tuition paid from some other source. Since tuition accounts for only about one third of college costs, having more than one source of assistance allows families to manage this great expense more easily.
A PACT brochure and application, or more information, are here online, and can also be requested by calling 1-800-252-7228 or 334-242-7514, or via email at alapact@treasurer.state.al.us