I first saw the language below when Countrycat pointed out that it was posted on this Alabama Commission on Higher Education web page. I notice they’ve removed it from their site. I am glad I copied and pasted it word-for-word, so we can compare it to this [emphasis added]: Through the PACT program, a contract may be purchased to prepay 135 hours of tuition and eight semesters of mandatory payments at any Alabama public college or university for students in the ninth grade or below. 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.
This paragraph, in slight variations, has been included in at least 17 press releases from the State Treasurer’s office since August of 2004. Press releases are official statements intended for mass distribution. These particular press releases are either communicating a policy, or they are communicating deliberate falsehoods. I can see no middle ground. This description of PACT has been repeated too many times to be a misstatement. It is calculated to influence the financial decisions of a target audience. See the dated list of press releases at the end of this post. I’ll just link one here, because the last paragraph makes a clear distinction between PACT purchasers and 529 investors. 5/29/2006: [emphasis added]: I encourage all parents and grandparents to look into purchasing an Alabama PACT contract or investing in the Alabama Higher Education 529 Fund for a loved one.
I have to call your attention to this quote, too. It’s a classic marketing technique: Convey a sense of urgency. 12/14/2007: The enrollment period for PACT is only open for a brief window of time each year,” Ivey stated. “College tuition is one item that never goes on sale. There will never be a more affordable time to enroll, so start today.”
Here are a couple of other sentences that I saw frequently as I went about reading and archiving all these press releases: “With college tuition skyrocketing, it is important for families to plan now to send their children to college in the future . . .”
“PACT is based on a simple concept – pay today for tomorrow’s tuition.”
PACT Sold To Bankers – Exhibit B Just in case the video wasn’t enough proof for you, see page 11 of the current Bank Orientation Manual (pdf): Through the PACT Program, an individual can purchase a contract to prepay 135 semester hours of college tuition and 8 semesters of qualified fee payments at any Alabama public college or university. PACT may also be used at private or out-of-state institutions. The PACT Program is open annually for a limited enrollment period. The Alabama Higher Education 529 Fund allows an Alabama citizen to participate in an investing program for as low as $25 month and to select from a number of professionally crafted investment strategies. Withdrawals from the account can be used to pay for tuition, fees, books, room and board at any accredited college, trade or graduate school. The investment funds are managed by Van Kampen Investments. The Fund has open enrollment year round. Banks have partnered with the Treasurer’s Office to have summary brochures available to their customers through lobby displays, statement messages, and similar vehicles.
I find two things about this passage interesting: - The first paragraph contains some of of the language from the press releases.
- Compare the first and second paragraphs. Once again, we see is a clear distinction between purchasing a contract and participating in an investment program.
This is in an official publication under the seal of the Alabama Treasury Department. Press Releases All were publicly-viewable here as of this writing: 2004 08/29 – PACT Open Enrollment Announcement 09/08 – Open Enrollment Announcement 09/28 – Enrollment Deadline Extension Due to Hurricane Ivan 10/26 – Announcement of Weblink for PACT account holders 2005 03/03 – Announcement that PACT and 529 fund combined have more than $1 Billion in assets 07/27 - Announcement of Ivey’s visits to Pell City, Talladega, Rockford, and Wetumpka 08/05 - Announcement of Ivey’s visits to Evergreen, Andalusia, and Brewton 09/13 - Announcement of College Savings Month 09/20 - Enrollment Deadline Reminder 2006 05/29 - Encouraging people to start saving for college on 5/29. 08/17 - Applauding (and trying to take some credit for) the federal Pension Protection Act. 09/01 - “College Savings Month” announcement. 10/05 - PACT enrollment period announcement. 12/29 - PACT enrollment extension. 2007 08/09 - Announcement that one-year PACT contracts now available. 09/04 - “College Savings Month” announcement. 10/01 - Editorial statement on the virtues of a college education. (Note - This is Part 2 of "Everything I Know About the Alabama PACT. Part 1 covers the basic organization.) |
