The Alabama Supreme Court has sent the lawsuit involving Alabama’s financially troubled Prepaid Affordable College Tuition plan back to the trial court. A settlement had been reached between the parties and approved by the trial judge. An objection to the settlement was before the Supreme Court. The Court issued a 6-1 decision saying the settlement, approved by the trial judge, was void because it conflicts with state law. The Court said the Legislature provided extra funding to PACT in 2010 to make tuition payments fully funded and not violate the contract relationship between the PACT board and PACT contract holders. In its opinion, the Supreme Court said the settlement violates that because it calls for PACT to pay tuition at 2010 levels and for the students’ families to make up the difference.
Source: Associated Press
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