InvestingSaving For CollegeThe Florida Prepaid College Plan - A Complete Guide to Maximizing College...

The Florida Prepaid College Plan – A Complete Guide to Maximizing College Savings

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As a retired financial planner who has helped hundreds of Florida families plan and save for college over the years, I understand the anxiety around affording a quality education. College costs have skyrocketed, causing many parents to wonder how their child will attend the school of their dreams without drowning in debt.

The good news is that Florida offers an incredibly valuable tool to put higher education within reach – the Florida Prepaid College Plan. Over my career, I’ve seen firsthand how this plan provides families peace of mind by locking in future college costs at today’s prices.

In this comprehensive guide, I’ll break down everything you need to know about the Florida Prepaid Plan from savings and investment options to tax benefits and more. My goal is to equip Florida parents with the knowledge to make informed choices about their child’s education.

As a father myself, I know how important it is to give your kids the brightest future possible. So let’s get started!

Key Takeaways: Florida Prepaid College Plan

  • Florida Prepaid College Plan serves as a financial safety net for parents, ensuring affordable education. This plan is like a tuition insurance, guarding against future cost hikes. While it’s a comprehensive solution, there’s more to explore about its flexibility and investment benefits.
  • Plan Types and Options: Explore various Florida Prepaid Plan options, like the 2-Year Florida College Plan or the 4-Year University Plan. These plans are investment vehicles, offering education savings tailored to different family budgets and educational goals.
  • Financial and Tax Advantages: The plan offers tax benefits and state guarantees, acting as a fiscal shield. It’s a tax-advantaged investment, yet it’s crucial to understand its estate planning implications and federal tax benefits.
  • Complementary Strategies: Integrating the Florida Prepaid Plan with 529 Savings Plans or scholarships enhances your college funding strategy. It’s a financial planning tool that works best when paired with supplemental savings options.

Did you know the Florida Prepaid College Plan is more than just a tuition payment plan? It’s a strategic investment in your child’s future. Discover how it can be a cornerstone in your long-term financial planning, ensuring your child’s education is secure in the ever-changing economic landscape.

Stay tuned for an in-depth exploration of how this plan can be tailored to your family’s unique educational aspirations and financial circumstances.

The Two College Florida Prepaid Plans

Understanding Florida Prepaid Plans

The Florida Prepaid College Plan takes the guesswork out of saving for college. By prepaying tuition, fees, dorm costs and more at today’s plan prices, your child’s college education is locked in at a fraction of what prices could rise to in 10+ years.

I like to think of it as a “worry-free” approach to college savings because once you enroll and begin making payments, the hard work is done. The state of Florida guarantees your plan will cover the benefits you prepay, even if actual college costs end up higher.

Key features like a 10-year usage window and built-in inflation protection give families substantial “peace of mind” that their investment will pay off when their child is ready for college.

For more reading on this topic:

comparing income with and without a college degree
comparing income with and without a college degree

As a starting point, it’s helpful to understand the two main 529 plan options Florida Prepaid offers:

  • Prepaid Plans – Allow families to prepay future tuition, fees, dorm costs, etc. at today’s locked-in plan prices.
  • 529 College Savings (Investment) Plan – Families contribute to a tax-advantaged investment account and withdraw funds to pay actual college expenses later.
10564 1008070 Florida Prepaid College PlanFlorida Prepaid College Plan

Next, I’ll further break down prepaid plan options, benefits and strategies for maximizing your investment.

Key Facts About The Program

  • The Florida Prepaid College Plan is the largest and longest-running prepaid college plan in the country, with over 30 years of history. 
  • The Florida Prepaid College Program allows Florida families to prepay for college by paying the current tuition prices.
  • The State guarantees the Florida prepaid plans, so families don’t have to worry about their investment accounts going up and down with the stock market.
  • You are not alone in choosing Florida college prepaid plan; already, over 1.2 million families have enrolled in the plan. 
  • For years you probably have heard from friends and neighbors how much they love the Florida prepaid college programs. The good news is that several years of lower than anticipated tuition and fee inflation have allowed the Florida Prepaid College Board to reduce Prepaid Plan prices for many current customers and new customers!
  • The Prepaid Florida College Plan and the Florida 529 Savings Plan are both authorized 529 college plans with benefits that include tax-free earnings when spent on qualified higher education expenses nationwide at public or private schools and universities around the country, including technical and vocational schools. 
  • Worried that your child may want to go to a school outside other than a Florida College or State University? With the Prepaid Plan, participants can use their benefits at schools around the country without worrying – the program will pay out an equal amount whether you choose an in-state college or an out-of-state college.
  • Florida College Prepay Plans are flexible – you can cancel for a refund if necessary or transfer to another beneficiary.

FL Pre-Paid Plan Types and Options

The Florida Prepaid Plan offers families several options to prepay future college expenses. Which plan you choose depends on your budget, what college costs you want to cover, and your child’s expected path to higher education. Here is an overview of the main plan types:

Plan NameDescriptionCollege Costs Covered
2-Year Florida College PlanCovers tuition, fees, and dorm costs for 2 years at a Florida public collegeTuition, local fees, dormitory housing
4-Year Florida University PlanCovers tuition, fees, and dorm costs for 4 years at a Florida public universityTuition, local fees, dormitory housing
1-Year Florida University PlanCovers tuition, fees, and dorm costs for 1 year at a Florida public universityTuition, local fees, dormitory housing
Florida 529 Savings PlanTax-advantaged investment account to pay a wide range of college expensesFlexible – account funds used to pay actual costs
Florida Prepaid Plan Options

What are the five open enrollment options for the Florida prepaid college programs?

During this time, you elect one of the five available prepaid college programs to enroll in. Each will have different coverage and cost.

  • 2 year Florida college plan – covers tuition for 60 credit hours at Florida colleges. You can earn an associate’s degree or trade certification.
  • 4 year Florida college plan – covers 60 lower credit hours and 60 upper credit hours at a Florida college to earn a bachelor’s degree.
  • 2 + 2 Florida prepaid college fund – covers 60 lower credit hours at a Florida college and 60 upper credits at a State University. You can earn the same degree as a four-year University but at a lower cost.
  • 1 Year Florida University plan – the most affordable program that allows you to pay a set number of credit hours (30), or one year, at a State University program in Florida.
  • 4 Year Florida University plan -will cover a number of credit hours (120 credit hours), or four years, at a State University. This will allow a student to earn a bachelor’s degree at either Florida State University or the University of Florida.
Enroll florida prepaid educate success

Key Notes and Tips:

  • Prepaid Plans can also be used at private colleges and universities nationwide in amounts equal to Florida public college costs
  • Plans can be customized by adding coverage for additional fees if desired
  • Plans can be transferred to another beneficiary or refunded if unused
  • Plans lock in today’s prices – protection from tuition inflation over 10+ years
  • Combining a Prepaid Plan with the Savings Plan allows full customization


As you evaluate options, focus first on covering tuition and fees which see the highest rate of price inflation over time. The peace of mind from locking in these costs is invaluable. Additional expenses can be covered later through the Savings Plan or other savings vehicles.

Advantages and Considerations of Florida Prepaid Plans

Alternatives Ways to save for college

The Florida Prepaid Plan offers families substantial benefits and advantages compared to other college savings approaches. However, there are also some important considerations to weigh when deciding if it’s the right fit for your family. This table outlines some of the main pros and cons:

Locks in today’s college prices protecting from tuition inflation over timeDoes not cover all college costs – additional out-of-pocket costs likely
Customizable coverage and flexible usage at schools nationwidePlan must be used within 10 years of child’s high school graduation
Principal and returns are guaranteed by the State of FloridaChild must attend Florida public college for 4 years to maximize full plan value
Can be transferred to another beneficiary or refundedLimited investment upside compared to more aggressive college savings plans
Tax-advantaged – earnings used for college expenses are federal tax-freeNo state tax deduction for Florida residents since no income tax here
Advantages and Considerations of Florida Prepaid Plans

Tips for Getting the Most from Your Plan:

  • Maximize plan usage by attending an in-state public school
  • Combine with other savings to cover additional expenses
  • Start early to maximize price protection from inflation
  • Take advantage of flexibility to change beneficiaries if needed
Average Cost of College for in state students map

Finding the Right Plan – Real-Life Examples

When considering Florida Prepaid, it helps to think through your own family’s situation. Here are two examples of how the decision-making process could unfold:

Example 1 – The Smith Family

Mark and Jennifer Smith have 2 kids – a 9 year old son named Ryan and a 5 year old daughter Emma. Here is how they approached picking a Florida Prepaid Plan:

  • They expect both kids will attend Florida public universities – likely University of Florida or Florida State
  • By starting a prepaid plan early, they can maximize protection from tuition inflation each year
  • Budget allows $150 monthly for college savings
  • Want flexibility since second child is young and plans may change
  • Selected the 2-Year Florida College Plan for their son Ryan (covers over 50% of estimated costs)
  • Chose the Flexible Prepaid Plan for Emma since her plans are less certain
  • Will continue contributing to a 529 Savings Plan to cover additional anticipated costs

This customized strategy locks in significant tuition and fees for both kids while maintaining flexibility. By frontloading the prepaid benefits, budget impact is reduced later when college expenses hit.

benefit of saving early for college savings

Hypothetical 2 – The Davis Family

Maria and Steve Davis have one daughter Gabriella (age 15) who is planning to attend an out-of-state private university to study computer science. Here is their prepaid planning process:

  • Gabriella has strong grades and test scores – potential for significant academic scholarships
  • Top choice colleges cost over $70,000 a year for total expenses
  • Family received inheritance gift of $200,000 earmarked for education
  • Want flexibility but also protection given market volatility
  • Selected $100,000 1-Year University Plan + remaining $100k to 529 Plan
  • 529 Plan invested aggressively for growth potential to help cover future costs
  • Prepaid Plan provides solid baseline of cost protection at chosen university

Determining the prepaid and college savings split took detailed projections but gives their family the right balance of flexibility and downside protection.

As you evaluate options for your own family, examine your budget, college expectations, and risk tolerance. And I’m always happy to offer guidance based on the many experiences I’ve had over the years!

Flexible Enrollment and Payment Options

When you’re ready to enroll in Florida Prepaid, you’ll be pleased to discover flexible payment choices to fit different budget needs. I’ll overview the main methods below:

FL College Prepaid Savings Plan Enrollment Process Step By Step

Lump-Sum Payments

If funds allow, you can make a lump-sum payment to cover your entire prepaid plan cost at enrollment. This allows you to immediately lock-in a plan’s future tuition benefits.

-> Many families choose to pay lump-sum when they have funds available from sources like inheritances, home sales, or bonuses.

Tuition Prepaid Payment options

Installment Payments

For those looking to spread payments over time, Florida Prepaid offers installment plans at enrolment where you pay monthly or annually on an automatically recurring schedule.

-> Many families fund their plan through steady periodic contributions over years. Some employers even offer payroll deduction straight from your paycheck into a prepaid plan!

Custom Payment Schedules

The Florida Prepaid website and mobile app also allow you to make one-time, sporadic payments whenever fits your financial situation, even after enrolment. So families can “pay-as-they-go” as irregular funds become available.

Visit to fill out a quick online application (about 15 minutes), or please contact Florida prepaid at (800) 552-4723 (GRAD) phone number to speak with the FL prepaid customer service.

Tips for Affording Your Plan:

  • See if relatives want to contribute to a prepaid plan as a gift for birthdays or holidays!
  • Have your child chip in from part-time jobs or side hustles. Teaches financial responsibility too!
  • Use windfalls like bonuses or tax refunds to make extra principal payments whenever possible.

Comparing The Florida College Plan to Other States

A000 0table to compare the Florida Prepaid College Plan with similar plans from other states involves looking at various factors such as plan types, coverage, benefits, and restrictions. Here’s a simplified table to provide a general comparison:

Feature/PlanFlorida Prepaid College PlanOther States’ Plans (General)
Type of PlanPrepaid Tuition PlanPrepaid Tuition and/or 529 Savings Plans
CoverageTuition, fees, dorm costsVaries – tuition, fees, room, board, etc.
UsagePrimarily for FL public colleges/universities, but applicable nationwideUsually applicable nationwide, with some state-specific benefits
State GuaranteeYes (state of Florida)Varies by state
Investment OptionsPre-determined by the planOften includes a range of investment choices
Enrollment PeriodSpecific open enrollment periodVaries, often with rolling enrollment
Payment OptionsLump-sum, installment, custom paymentsTypically include lump-sum, installment, and sometimes age-based options
Tax AdvantagesEarnings grow tax-free; no state income tax benefitsFederal tax-free growth; state tax benefits vary
FlexibilityCan be transferred or refunded; limited investment choiceOften more flexible with investment choices; transfer and refund policies vary
Out-of-State UsePays the same amount as it would in Florida, regardless of actual costPolicies vary; some offer full value, others pay an equivalent amount
Additional BenefitsInflation protection, various plan options (e.g., 2-Year, 4-Year plans)Varies – may include matching grants, scholarships, or other incentives
EligibilityBeneficiary must be a Florida resident at enrollmentResidency requirements vary; some open to non-residents
a table to compare the Florida Prepaid College Plan with similar plans from other states

It’s important to note that this table provides a general overview. Specific details can vary widely among different states’ plans. Each state’s 529 plan or prepaid tuition plan will have its unique features, benefits, and limitations. For accurate and detailed information, it’s advisable to consult the official websites or financial advisors specializing in educational savings plans.

The next key topic to understand is how Florida Prepaid integrates with other college funding resources like financial aid and scholarships. There are strategic ways families can optimize these funding sources with their plan…

Combining Prepaid Plans with Additional College Funding

One of the best features of Florida Prepaid is that it complements other potential sources of college funding families receive:

Type of Prepaid Plans Available in FL


Many students earn academic or other scholarships covering a portion of their tuition and fees. The value of your prepaid plan gets applied first, then any remaining scholarship funds can be used to cover additional expenses like room, board, textbooks, a computer, and more.

Financial Aid

College financial aid such as federal grants and loans can also be used in conjunction with prepaid plans. Work with the financial aid office to determine eligibility for aid programs that help fill any remaining gaps in paying total college costs.

Special Savings Programs

There are also unique savings programs such as the Florida 529 Savings Plan and UTMA/UGMA Custodial Accounts that parents open on their own. These can supplement a prepaid plan by funding extras like dorm living expenses, study abroad, internship programs, and post-graduate costs.

Tips for Parents:

  • Apply early for financial aid by completing the FAFSA form
  • Research and apply for every scholarship opportunity possible, no matter how small
  • Use supplemental savings programs strategically to fill any remaining funding gaps

The next key piece of planning ahead is understanding tax implications, which I’ll tackle in the next section…

Tax Advantages and Considerations

One appeal for many families is the tax-advantaged status of 529 college savings plans, including Florida Prepaid. Here are some key factors to understand:

Tax Advantages of College Savings Plan

Federal Tax Benefits

The earnings growth within both the Florida Prepaid and Savings Plans is free from federal income tax when withdrawals are used for qualified education expenses. This tax-deferred growth allows your investment to compound over time.

State Tax Deductions

While Florida does not offer a state tax deduction (no income tax here), many other states do allow taxpayers to deduct 529 contributions from their state taxable income. Check if your state offers this added benefit.

Tax Reporting

Withdrawals used for tuition will result in the recipient and beneficiary receiving a 1098-T form for reporting on tax returns. So while prepaid plans have tax advantages, they do create some additional tax paperwork.

Estate Planning

Finally, an often overlooked benefit is that prepaid plan assets are removed from your taxable estate. Paying down a plan during your lifetime reduces future estate taxes.

Tips for Maximizing Tax Perks:

  • Consult a tax advisor to discuss your personal situation
  • Keep thorough records of all qualified college expenses
  • Remember all withdrawals for non-education spending may incur taxes and penalties

Next, I will cover some final best practices for long-term management of your Florida Prepaid Plan…

Long-Term Account Management Strategies

Once you’ve selected your prepaid plan, there are some ongoing best practices that help ensure your family maximizes the value over the long-term:

Monitor Your Plan Online

Florida Prepaid provides an online account dashboard allowing you to track payment history, plan details, future projections of college costs, and more. Log in annually to review your status.

Change Beneficiaries if Needed

If your child decides not to attend college or use the full plan benefits, you can change the beneficiary to a sibling, cousin, etc. This flexibility keeps the plan impactful.

Adjust Your Plan Over Time

As family needs evolve, you can make adjustments to your prepaid plan type or term length. Adding a year or converting plan types is simple through your online account.

Withdraw Funds Strategically

Be strategic when making withdrawals from a 529 Savings Plan which is more prone to market volatility compared to the Prepaid Plan. And remember non-qualified withdrawals face taxes/penalties.

Tips for Staying on Track:

Summing Up Your options
  • Mark your calendar annually to review college projections and make any needed prepaid plan adjustments
  • Contact Florida Prepaid’s exceptional customer service line with any questions on managing your account
  • Attend college planning events which often have Prepaid Plan experts available for guidance

Final Thoughts on Preparing for Education Expenses

Deciding how to affordably pay for college is a major financial commitment, so take your time evaluating all options during your child’s early years. While the Florida Prepaid Plan locks in future tuition rates, don’t overlook other savings and investment strategies that can complement it.

I encourage all Florida parents to run projections early, research plans in detail, and consult unbiased advisors like myself to determine the best path based on your family’s specific college goals and budget. Weigh prepaid pros and cons carefully against other college savings tools out there.

With prudent planning, you can limit dependence on burdensome student loans and graduate your children debt-free! I wish all Florida families the very best pursuing an affordable, world-class college education. Please don’t hesitate to get in touch if you need any personalized guidance or have additional questions as you set your child up for a life full of opportunities.

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Florida Pre Paid College Savings Program Questions And Answers

Here are the quick answers to the most frequent questions asked about the college savings program in FL.

When can I enroll in the Florida Prepaid College plan?

The open enrollment period for the Florida Prepaid College Plan runs from February 1st to April 30th annually. You are able to submit an application at any time during the year but can only enroll in the plan during open enrollment. Pricing for the plan is released at the beginning of open enrollment on February 1st each year.

What are the Prepaid Plan prices? 

As I mentioned, plan prices are announced every year at the beginning of open enrollment.  

A Prepaid Plan cost calculator is available at:

How are the Florida prepaid college plan prices determined?

  • The current cost of tuition & fees
  • The projected cost by the time the child is ready to go to college
  • Projected investment returns by the State

What age can I enroll my child?

There is an age requirement for the plan, since enrollment is based on your child’s expected start of college. You can enroll in the prepaid plan anytime from the time the child is born through 11th grade.

Do I have to be a Florida resident to enroll in the Florida prepaid?

Yes, your child that is enrolling in the program would need to be a Florida resident at the time of enrollment.

college university bunkbed in dorm room

Is there an option to cover dormitory housing costs?

Yes, you can choose to also purchase the 1 year University Dormitory plan to cover a year of dorms.

How do I pay for the FL Pre-Paid Plan? What are my options?

The Florida prepaid college plan currently offers parents three payment options: you can make a monthly contribution, pay over five years, or in one lump sum.

Can I lose money by buying the program?

The State of Florida is assuming the risk of investments and inflation – the plan is guaranteed by the State of Florida. So no, you do not have an investment risk in the plan.

Are there any tax benefits or deductions of the plan?

You do not get a tax deduction, federal or State, for buying into the Florida prepaid plan. The tax advantages of the plan are that any earnings are tax-free when/if used towards qualified higher educational institution expenses such as tuition.

Am I limited to using the plan in the State of Florida only?

Florida on a map

Can I use Florida prepaid out of state? Yes and no, let me explain.  

The plan is designed to prepay the cost of college tuition for a state of Florida college or state University. But, the plan WILL pay to another school out of State the same as they would have paid to a Florida college or state University. You would be responsible for covering the difference if there is a shortfall.

Did I waste my money if my child received a scholarship?

No, not at all. First off, congratulations to your child and your pocketbook for that scholarship!! The most common scholarship would be the Bright Futures, but if your child does get a scholarship, you can either get a refund for an unused amount or use the prepaid plan for graduate school.

Is Florida prepaid refund taxable? 

When it comes to Florida prepaid refunds, the general rule is that they are not taxable. However, there are some exceptions to this rule. For example, if the refund is for contributions that were made on or after January 1, 2003, then the refund may be taxable. Additionally, if the refund is for contributions that were made on or after January 1, 2009, and the beneficiary is no longer a Florida resident, then the refund may be taxable.

10564 1008070 Florida Prepaid College PlanFlorida Prepaid College Plan

What happens if we move out of the State of Florida?

You will be happy to hear that you get an additional benefit from the Florida prepaid tuition plan then. Even though you would be an out-of-state resident at the time of college, your child would still qualify for in-state tuition rates!! This means you would see no downside to having the prepaid college program setup. Of course, you can always request a refund instead or use the proceeds for another state’s college program if you choose

Is there a time limit to using the plan?

Actually, there is. Remember I said you need to put the anticipated High School graduation date on the application? You have ten years from that graduation date to use the Florida prepaid tuition plan.

And what happens if my child decides not to go to college?

You can always get a refund for what you paid into the plan.

Can Florida Prepaid be transferred to a sibling? Yes, you can transfer the prepaid tuition to another family member.

Who can I call if I have questions about Florida Prepaid?

Are you trying to get in touch with Florida Prepaid customer service? Wondering what the Florida Prepaid phone number is?

Is there a Florida Prepaid Refund in 2022?

Glass half full says the cost of college has not gone up as much as the state of Florida anticipated. The glass half empty says that they were overcharging you if you already owned a Florida Prepaid account. Either way, account owners who purchased the plan before December 31, 2021 may be eligible for a refund.

The refunds , will be distributed on a first-come, first-served basis. Just log into your account and see if you are eligible

Prepaid Plan Price Reduction for Current Account Owners

Can you get financial aid if you have Florida repaid?

There are a few things to consider when asking if you can get financial aid if you have Florida prepaid. The first is that financial aid is based on need, so if you do not have a demonstrated need for financial aid, you will not be eligible to receive it. The second is that if you have Florida prepaid, you may not be able to use it to cover the entire cost of your tuition and fees, so you may still need to take out student loans or find other forms of financial aid to cover the remaining costs.

Next Steps:

As we conclude reviewing the Florida Prepaid College Plan, let’s reflect on key takeaways. This plan is a strategic safeguard – more than just tuition coverage. It offers comprehensive education savings with diverse options tailored to family needs. The tax perks and estate planning benefits provide robust protection against unpredictable college costs.

As a father and retired financial planner, I deeply understand the concerns in saving for a child’s future education. This journey requires foresight and a reliable guide. The Florida Plan serves as a compass, providing direction and reassurance. Each family’s needs differ, and this plan adapts to goals and circumstances.

Please share your thoughts in the comments – what considerations arise when planning your child’s education funding? How might this plan fit your strategy? Your insights enrich the conversation.

Stay tuned for more articles delving into optimized college savings and broader financial planning. Don’t miss subsequent valuable insights – subscribe to my newsletter for the latest comprehensive guides to informed family financial decisions.

The Florida Prepaid Plan isn’t just a financial instrument. It’s a stepping stone towards realizing a child’s potential, representing the hope invested in their future. Let’s make education attainable and inspiring – laying foundations for brightness ahead. I encourage you to explore the plan further and take vital steps toward securing an enriching academic journey.

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Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.

Michael Ryan
Michael Ryan
Who Am I? I'm Michael Ryan, a retired financial planner turned personal financial coach. And author and found of blog. My advice is backed by decades of hands-on experience in finance and recognition in esteemed publications like US News & World Report, Business Insider, and Yahoo Finance. 'here'. Find answers to your financial questions, from budgeting to investing and retirement planning, on my blog My mission is to democratize financial literacy for all.