Can the contract be used if the beneficiary chooses a private or out-of-state college/university?
Yes. The benefits paid would be based on a weighted average of Alabamas public undergraduate tuition and qualified fees at the four-year institutions. The amount paid is based on the number of hours taken since the average is computed per semester hour. For example, currently the rate is $141.47 per semester hour ($94.31 per quarter hour) and $62.50 per semester ($41.67 per quarter) for fees. If your beneficiary takes 15 hours, the amount paid will be $2122.05 (15 times $141.47) + $62.50 = $2184.55 minus a processing fee of $25 resulting in a payment of $2159.55. This rate changes on January 1st of each year to reflect the previous years increases.
