Monday, 02 03, 2014
FRANKFORT, Ky. (Feb. 3, 2014) — State Rep. Mike Denham of Maysville has introduced House Bill 279 that will save the state $20.1 million and protect funds for higher education through changes to the state’s prepaid tuition plan administered by the Kentucky Higher Education Assistance Authority (KHEAA).
“This legislation will protect account holders who have been counting on this fund to pay for their child’s education,” Denham said. “By closing loopholes that have led to a program deficit, we are reducing the obligation of the General Fund in the coming years.”
The bill would set the rate of return on Kentucky Affordable Prepaid Tuition (KAPT) accounts that are not used for educational purposes. It would also set 2028 as the last year a KAPT account can be used for any purpose.
“The last account owner is projected to graduate college in 2026,” said Dr. Carl Rollins, Executive Director of KHEAA. “We need to make sure that we uphold our promise to those children and families that have invested for education.”
KAPT was established by the General Assembly in 2000 to help families save for college. It has not accepted new enrollments since 2004 because tuition inflation started outpacing fund growth.
Kentucky families can still save for college expenses with the Kentucky Education Savings Plan Trust, administered by KHEAA. For more information, visit www.kysaves.com.
KHEAA is the state agency that administers grant, scholarship and work-study programs to help Kentuckians pay college expenses.
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