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#27120 - 06/11/03 09:07 PM Cashing in Florida Prepaid College fund
Yvonne Biondo Offline
Junior Member

Registered: 06/11/03
Posts: 1
Loc: Coral springs, Florida
My daughter just won a 4 year Bright Futures college fund.
She is enrolled in University of Florida.
How do I cash in my prepaid college fund?
Or can I transfer that balance to the dormitory fees??

'


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Yvonne E. Biondo
6174 NW 53 Circle
Coral Springs, Florida

954-755-1816
_________________________
Yvonne E. Biondo
6174 NW 53 Circle
Coral Springs, Florida

954-755-1816

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#27121 - 06/12/03 08:45 AM Re: Cashing in Florida Prepaid College fund
tjb_nc Offline
Member

Registered: 04/12/01
Posts: 2486
Loc: NC
First, congratulations on your daughter's scholarship. FL didn't have those things when I graduated from HS a few towns away from you.

Read the FL prepaid's contract documents (I think they call it the "covenant"). That will tell you all your options given your circumstances - including whether you can transfer credits to the dormitory plan, etc. If you don't have the most recent version, check the prepaid site.

Finally, you may want to edit your post and delete your address/phone #. It is usually not a good idea to leave those on a web page like this.

Hope this helps.

TJ

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#27122 - 06/12/03 11:48 AM Re: Cashing in Florida Prepaid College fund
Drewparr Offline
Member

Registered: 03/25/03
Posts: 511
Be careful to read the fine print,

to cash in a plan as a nonqualified distribution is generally bad news under many prepaids. bu to cash it out $ for $ as a qualified distribution for scholarship $ recieved may be very different.

It may be difficult to transfer it to dormitory fees--read the fine print, many ture prepaids do not permit this.

Hint, it may be more value effective to move it about the family tree to somebody else who can use it full value in FL and barter an outcome?

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#27123 - 06/12/03 11:52 AM Re: Cashing in Florida Prepaid College fund
tjb_nc Offline
Member

Registered: 04/12/01
Posts: 2486
Loc: NC
Drewparr

Unlike many other prepaid plans, FL offers an explicit dormitory payment option in addition to the tuition payment option (see Joe's summary sheet on the plan). So the issue is whether she can move it from one qualified use to another for the same beneficiary within the FL prepaid plan structure. As you and I both said, the details will be in the contract documents.

TJ

[This message has been edited by tjb_nc (edited June 12, 2003).]

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#27124 - 06/12/03 03:29 PM Re: Cashing in Florida Prepaid College fund
burnsos Offline
Junior Member

Registered: 06/12/03
Posts: 1
Loc: Jacskonville, Fl
see below, directly from the fl ppd website FAQ section:

If a student receives a scholarship that is not limited to the payment of registration fees, such as the Bright Futures Scholarship, the account owner has one of three options.

1) The account owner may use the Florida Prepaid College Plan benefits as originally planned. The college or university will issue a check to the student for the scholarship. These funds may then be used by the student to offset expenses that are not covered by the prepaid contract.
2) The account owner may transfer the contract to brother, sister or first cousin of the original beneficiary, or to a grandchild of the account owner.
3) The account owner may request a scholarship refund and receive an amount equal to the current rates for state university fees paid on a semester-by-semester basis.

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