Montgomery — In an effort to further promote Alabama's two college savings programs, State Treasurer Kay Ivey continues to inform families of the importance of preparing for rising college costs.
      "As treasurer and administrator of Alabama's two 529 college savings programs, I am proud to help Alabamians meet the rising price of college tuition through the Prepaid Affordable College Tuition Program and the Alabama Higher Education 529 Fund," said Ivey.
      The 529 Programs derive their names from Section 529 of the Internal Revenue Code authorizing states to create prepaid tuition plans and college savings programs. Alabama is a pioneer in the 529 industry, being the third state in the nation to implement a prepaid college tuition program in 1990.
    Through the PACTprogram, a contract may be purchased to prepay 135 hours of college tuition and eight semesters  of mandatory payments at any   Alabama public

college or university. PACT may also be used at private or out-of-state institutions based on a weighted average of state tuition costs. Flexible plans are available to pay for the contract that is priced according to the age of the student. The 2004 open enrollment period for PACT begins in August and will continue through out the month of September.
      The newer Higher Education 529 Fund, sponsored by the State of Alabama and professionally managed by Van Kampen Investments, allows investors to contribute to an individual account within the 529 Trust Fund. Investors can then choose from several investment options and later use the investment results of that particular account to pay for college expenses. Individuals can enroll at any time with as little as $250 or $25 a month.
      These two programs, the Higher Education 529 Fund and PACT, feature tax advantages and flexibility and can be used together to help lighten the heavy burden of paying for tuition, room and board, books and other student fees. The programs work well together and allow investors to choose the option that best meets their financial needs.
      "Parents and grandparents need to remember — it's more than an investment in your children's college education," said Ivey. "It's an investment in their dreams."

For more information on the PACT and Higher Education 529 Programs call the State Treasurer's Office toll free at 1-800-252-7228 or log on to the website at www.treasury.state.al.us.