Colorado Tution Credits Program
market volatility which may cause the return on those investments to be less than you planned. The stabilization reserve provides an extra level of protection since it is designed to assist in meeting the obligations of the Fund if it should be needed. For example, the stabilization reserve could be used in a year that tuition significantly rises or investments under-perform. This stabilization reserve is included in the price of your contract. The Fund is evaluated annually for actuarial stability by Milliman & Robertson, Inc., a nationally-recognized actuarial firm with established expertise in prepaid tuition funds, and audited annually by KPMG Peat Marwick LLP, an independent certified public accounting firm. In addition, State law restricts the Fund to prudent investments. Although there is risk involved in any investment, these factors contribute toward making this Fund lower in risk than many other options.
When are tuition units paid out?
In your contract, you specify a First Payout Date. Your investment can be paid out on or after that date. You decide how much is paid out each year according to your student's needs.
How are my tuition units paid out?
When the student attends college, you instruct the Fund to transfer the appropriate amount of your investment in direct payments to the college or university.
Who is managing the money I pay into the Fund?
The Fund will be managed by the Colorado Student Obligation Bond Authority, an independent state authority, using private sector professionals to provide investment advice.
How is money in the Fund invested?
Money in the Fund will be invested in publicly traded common stocks - both domestic and international - as well as fixed income instruments such as bonds. Private sector investment consultants recommend the investment strategy and oversee the Fund's compliance with State law regarding investment options.
Pricing
How are my prices determined?
Prices are based on four factors: average tuition in the year you purchase your contract, the number of tuition units you purchase, the number of years between the purchase of your contract and your First Payout Date, and which payment plan you choose.
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