PACT Board Approves 4% Tuition Benefit Increase Effective Fall 2025
Summary
The PACT Board of Directors approved a 4% increase to the tuition and fee benefit rate paid by the Alabama Prepaid Affordable College Tuition (PACT) Program at its May 20, 2025 meeting. This marks the eleventh consecutive benefit increase since the 2011 Class Action Settlement Agreement and will take effect for fall semester 2025. The PACT Program, which originally sold 76,251 contracts dating back to 1990, now maintains less than 4,500 active contracts.
What changed
The PACT Board approved increasing the tuition and qualified fees rate paid by the program by 4%, effective fall semester 2025. Under the 2011 Class Action Settlement Agreement, PACT pays the lesser of current school tuition and mandatory fees or the 2010 tuition rates as adjusted annually by the Board.\n\nActive PACT contract holders should note the increased benefit payments for fall 2025 enrollment. The program continues to manage reduced contract volume, having declined from 76,251 original contracts to under 4,500 active contracts, while maintaining the benefit structure established under the settlement agreement.
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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 20, 2025. This marks the eleventh consecutive increase in benefits since the Class Action Settlement Agreement was approved and will be effective fall semester 2025.
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.
The PACT Program originally sold 76,251 contracts dating back to 1990 and now has less than 4,500 active contracts.
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