Alabama PACT Board Approves 4% Benefit Increase for Fall Semester
Summary
The Alabama Prepaid Affordable College Tuition (PACT) Board approved a 4% increase to tuition and fee benefit payments at its May 14, 2024 meeting. The increase, effective fall semester 2024, represents the tenth consecutive benefit increase since the 2011 Class Action Settlement Agreement. Under the agreement, PACT pays the lesser of current school tuition/fees or adjusted 2010 rates.
What changed
The Alabama PACT Board approved a 4% increase to the rate paid for tuition and qualified fees at public eligible educational institutions, effective fall semester 2024. This marks the tenth consecutive increase since the 2011 Class Action Settlement Agreement, which originally required payment at fall 2010 rates but allows increases when actuarial conditions improve.
Affected parties include approximately 6,000 active PACT contract holders and Alabama public colleges and universities. Most four-year schools currently receive full tuition and mandatory fees due to prior increases, while all two-year schools already receive full tuition and fees from PACT. The program, which originally sold 76,251 contracts since 1990, continues to reduce its active contract base while incrementally improving benefits.
Archived snapshot
Apr 18, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
MONTGOMERY – State Treasurer and PACT Board Chair, Young Boozer, announced that directors of the Alabama Prepaid Affordable College Tuition (“PACT”) Program approved a 4% increase to the current rate paid by the PACT Program for tuition and fees at its board meeting held May 14, 2024. This marks the tenth consecutive increase in benefits since the Class Action Settlement Agreement was approved and will be effective fall semester 2024.
Under the 2011 Class Action Settlement Agreement, PACT was required to pay tuition and qualified fees at the fall 2010 rates as certified by each respective Alabama public eligible educational institution. The agreement was negotiated to allow for an increase in benefit payments if the actuarial condition of the PACT program improved. In all cases, the PACT Program pays the lesser of the school’s tuition and mandatory fees or the 2010 tuition rates as adjusted annually by the Board.
Most four-year Alabama schools are currently receiving the full cost of tuition and mandatory fees due to the increases granted by the Board over previous years. All two-year Alabama schools currently receive full tuition and mandatory fees from the PACT Program.
The PACT Program originally sold 76,251 contracts dating back to 1990 and now has less than 6,000 active contracts.
Contact in Treasurer’s Office:
Glenda Allred
(334) 242-7501
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