San Juan, Puerto Rico (PressExposure) October 12, 2009 -- With college tuition rates rising and the cost of obtaining a college degree getting further and further from reach, once praised college savings plans are now not making the grade.
Almeda University reports that a new first time view of the economic downturn could greatly affect the population's education and be devastating to the savings plans. The report finds that an expected 18% or more in spending cuts across the private and government sectors over the next couple of years will greatly affect the industry and many savings plans. Many of the so called guaranteed plans are fizzling as the costs continue to increase as a result of the financial markets meltdown in 2008. Some tuition plans have stopped accepting new applicants, reduced payouts or removed the guarantee all together. Reports of these prepaid plans are now in trouble looking for alternatives such as new private investors and asking their state legislative for bailouts to cover expected shortfalls in the programs.
Potential students, parents and advancing career workers are changing their focus and considering more affordable, more achievable educational goals. With the advancement of technology and the explosion of the internet, more and more institutions are reducing costs by offering online classes and degree programs. This allows them to operate at lower costs and higher margins making up some of the difference in the massive deficits they are experiencing.
Various "guaranteed" college savings plans are now providing less than parents and students expected as a result of escalating tuition costs, fees and the economic downturn's effect on the US markets. Turing to an online solution is not only an economical solution to the crisis but also as a faster and easier means of getting that long desired college degree. Many are offering this as a life experience degree online based on ones skills, experience, college credits and more.