Florida families have two powerful tools to save for higher education: the Florida Prepaid 529 Plan and the Florida Investment 529 Plan.
The Florida Prepaid 529 Plan, first offered in 1987, is the country’s most extensive and longest-running prepaid tuition program. Over one million families have used it to lock in tuition rates at Florida public colleges and universities, protecting themselves from rising costs.
While most people associate prepaid tuition with Florida’s public universities, the value of a plan can be applied at private colleges and even out-of-state schools. That makes it one of the most flexible educational savings plans available, though it works best for families who expect their child to stay in Florida.
How the Florida Prepaid College Plan Works
The Florida Prepaid 529 Plan allows families to lock in the future cost of tuition and required fees at Florida public institutions. What’s covered depends on the type of plan you purchase. Standard university plans cover three major categories of charges:
- Tuition – the base instructional cost per credit hour.
- Tuition Differential Fee – a per-credit fee charged by Florida’s state universities (not by Florida Colleges).
- Local Fees – institution-specific fees that support student activities, athletics, health services, and technology.
Plans can also be paired with an optional Dormitory Plan to cover on-campus housing at a Florida university.
For example, the 4-Year Florida University Plan covers 120 credit hours of tuition, the tuition differential fee, and local fees at a Florida university. A Florida College Plan covers tuition and local fees at Florida Colleges, but does not include the tuition differential fee since it is not charged by colleges.
Contract tuition plan prices are set each year during open enrollment. For the 2024–2025 enrollment period, monthly payments for a newborn started at about $119 for a 4-Year University Plan and around $33 for shorter-term options like a 1-Year University Plan or 2-Year Florida College Plan. Families can choose to pay in full, in fixed monthly installments, or in 5- or 10-year payment schedules.
Florida Schools That Accept Florida Prepaid
Florida Prepaid works at all public colleges and universities in the state, including:
- Florida State University
- University of Florida
- University of Central Florida
- University of South Florida
- Florida International University
- Florida Atlantic University
- Florida Gulf Coast University
- University of North Florida
- New College of Florida
- Florida A&M University
- All 28 Florida Colleges (formerly community colleges)
In addition, many private institutions in Florida honor Florida Prepaid contracts through separate agreements.
Using Florida Prepaid Out of State
While the program is designed for in-state schools, Florida Prepaid funds are not lost if your child chooses to attend an out-of-state or private college. If your child attends an out-of-state or private school, Florida Prepaid will pay the same amount it would have paid to a Florida public institution at the time of use. You are responsible for any difference if tuition at the other school is higher.
For example, if you purchased a 4-Year Florida University Plan, but your child attends a private university in Georgia, the plan will pay the same amount it would have paid to a Florida public institution at the time of use. You would be responsible for paying any difference if the other school’s tuition is higher.
Florida Prepaid plans can also be combined with scholarships and other forms of financial aid, such as the Bright Futures scholarship administered by the Florida Department of Education. If a scholarship covers tuition, the Prepaid Plan can be used for room and board or refunded to the account owner.
Florida Prepaid vs. Florida Investment 529 Plan
The Florida Investment 529 Plan offers a very different approach. It is an investment-based account where contributions are invested in portfolios with a range of investment options, such as enrollment year funds, static portfolios, and individual funds. The account has the potential to grow tax-free, and withdrawals are tax-free when used for qualified education expenses.
Unlike Florida Prepaid, the Investment 529 plan is not limited to Florida schools. Funds can be used at eligible institutions nationwide and cover a broader list of expenses, including housing, books, supplies, graduate school, and up to $10,000 per year for qualified K–12 education expenses (tuition, tutoring, books, and more), with the limit increasing to $20,000 per year starting in 2026. However, the account carries market risk, meaning balances can rise or fall depending on investment performance.
Many families use both programs together. The Florida Prepaid 529 Plan provides certainty by locking in tuition and fee coverage, while the Investment 529 Plan offers flexibility and room for growth.
Bottom Line
The Florida Prepaid 529 Plan is a powerful way to protect against rising tuition rates and ensure tuition is covered at Florida public institutions. Backed by the State of Florida, the program has helped families for decades by providing predictable costs and guaranteed coverage.
For maximum flexibility, families may want to combine Prepaid with the Florida Investment 529 Plan, using Prepaid for tuition and the savings plan for housing, books, or schools outside the state. Together, these Educational Savings Plans give families a strong foundation for paying for college.
FAQs About Florida Prepaid
Does Florida Prepaid pay 100% of tuition?
Yes, if you purchase a plan that covers four years of university or two years of college, it will cover 100% of tuition and the specific fees outlined in the contract. However, it does not cover expenses such as books, supplies, or off-campus housing.
Can you cash out your Florida Prepaid?
Yes. If your child doesn’t attend college or receives a scholarship, you can cancel the plan and receive a refund. Refunds are based on the current value of the plan or the amount paid in, whichever is less. Families can also request a scholarship refund to withdraw funds equal to the plan’s value without penalty.
What are the disadvantages of a prepaid tuition plan?
The biggest drawback is flexibility. Florida Prepaid is most valuable if your child attends a Florida public institution. The payout value may not fully cover tuition if your child goes out of state or to a private school. Another disadvantage is that the plan only covers tuition and certain fees, not the full cost of attendance.
How much does Florida Prepaid cover per credit?
The 4-Year Florida University Plan covers up to 120 credit hours. Florida Prepaid pays the in-state university tuition, tuition differential fee, and local fees in effect at the time of use, up to the contracted number of credit hours. If your child takes additional credits beyond the plan’s coverage, those would need to be paid out of pocket. The program publishes current per-credit values each year, which are applied when students use the plan.
