[smel]

Please tell me what you think of PACT. Many people where I live think the people who bothered to invest in it, should not be helped. Others think they should. What do you think?

I invested in it in the early 90's for both of my children, so naturally I hope the legislature finds a way to fund it fully.

[bluebeard]

As mentioned before, the impression I get is that it was portrayed as a state-backed fund. It should be reformed or eliminated for future investors, but those who already have should be supported.

[Okiefrombama]

It paid for my years in college, and I still have a year left of class credit paid that I can give to one of my younger relatives (That is if the program doesn't tank). The PACT program was presented as a promise to those who invested in it. I say get rid of the program, but a state's promise should be met to those who invested like you did in the 90's.

[Reactionary]

I think that PACT is a promise, as do Governor Riley and most legislators. IMO it would be political suicide to oppose PACT - plus there is the potential for lawsuits.

That said, I also think it's a State-sponsored Ponzi scheme. PACT was NEVER viable. The program should either: be reformed with the knowledge that it will require State funding in addition to parental investment or be terminated and pay off existing investors.

From the Huntsville Times (bolding mine):

Even at a peak of nearly $900 million in September 2007, according to actuarial tables there wasn’t quite enough money to cover all the future tuition payments – at least not without selling more contracts or benefiting from favorable investments.

A broken PACT? tate in denial about college guarantee centered - al.com

Here's an one of many articles a friend of mine wrote about PACT:

Alabama Ponzi scheme becomes a “moral obligation” | flashpoint (http://www.flashpointblog.com/2009/03/20/alabama-ponzi-scheme-becomes-a-moral-obligation/ - broken link)

[Southlander]

It was a contract, and I think the state should fulfill the contract.

I did not invest in it for my twins. As college graduates, we were fully aware that tuition, as high as it is, is only half the cost of college. We elected to do something else to fund their education - which we did, with no loans needed.

I think some people thought buying into the Pact plan would fund college entirely, or at least most of it. Even so...Alabama should fulfill it's end of the bargain it made. And then get out of that particular business.

[smel]

Yes, I believe some people did think that PACT would pay for everything. I knew that tuition was only part of it, and that room/board was more expensive than tuition, so I also invested in a 529 plan for each of my children. In saying all of this, I still believe that Alabama has an obligation to live up to its obligation. I have friends whose children live at home and go to school using PACT. We live near enough to several schools that this is possible. My older child attends UA. He recieved a scholarship for tuition and Pact pays for his room/board. The 529 plan lost money due to the stock market crash, so the money from it bought some books. I do not want anything that we do not deserve, but I do expect PACT to do what we were promised, no guaranteed.