Alabama Prepaid Affordable College Tuition (PACT) Program

PACT College Saving Plan for Alabama 

Plan Enrollment Information and Review

State Served: Alabama

Type of Plan:  Prepaid Savings Plan

Plan Sponsor:  Board of Trustees of the Trust Fund, chaired by the State Treasurer

Plan Administrator:  Board of Trustees of the Trust Fund, chaired by the State Treasurer

Minimum Contribution: $6,408 - $6,856 to buy one year of contract.

Maximum Contribution:  $23,938 - $25,650 to buy four years of contract

Portfolio Options:

Since this is a prepaid plan student is guaranteed to get 4 years of college in the state of Alabama.  If the student wishes to attend a private college or an out of state college PACT will pay the average tution of a public college. All contributions and growth are tax free.

How to Sign Up:  By going to the plan website or working with a financial advisor.

Tax Benefits:

  • Tax-deferred growth
  • Tax-free withdrawals for qualified college expenses.
  •  State residents are eligible for a state income tax deduction of up to $5,000 per individual ($10,000 if married filing jointly).