MONTGOMERY, AL (WBRC) - A new bill to fund the state's prepaid college tuition plan has passed a State House Committee.
The sponsor is Tuscaloosa Republican Robert Bentley. Bentley is also candidate for governor.
The bill would use money in the PACT plan to invest in an annuity-like product. That investment would pay a fixed return for 20 years. The difference between the return and what's needed to pay tuition would be borrowed from the state's oil and gas trust fund.
This new proposal has no limits on tuition increases.
Limits on tuition increases has been backed by the Alabama Education Association but opposed by the University of Alabama and Auburn University.
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