Report: Illinois prepaid tuition program underfunded -

Report: Illinois prepaid tuition program underfunded

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By Toby Talbot By Toby Talbot

CHICAGO (AP) -- The prepaid tuition program in Illinois is more seriously underfunded than any other state's and its new investment strategy is seen by some experts as risky.

That's according to an investigation published Monday by Crain's Chicago Business.

The business newspaper says Illinois law doesn't require taxpayers to bail out the College Illinois Prepaid Tuition Program, so thousands of families may not get what they think they paid for if the strategy fails.

Tuition increases and the recession have hurt prepaid tuition programs in Illinois and other states. The programs allow parents to lock in college tuition prices for their children.

Andrew Davis is executive director of the agency that oversees the Illinois program, and he defends its investment strategy. Davis says alternative investments could increase the fund's rate of return.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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