If state universities froze tuition for the next two years, the financial woes of the state’s prepaid tuition plan would practically evaporate.
That’s the conclusion of the state actuary, whose new analysis shows that freezing tuition two years in a row would bring the Guaranteed Education Tuition (GET) program’s unfunded liability to $117 million. The program would be 5 percent underfunded.
It is currently underfunded by more than $600 million — the amount of the shortfall that would occur if everyone with GET credits used them at the same time. The unfunded liability represents about 20 percent of the total value of all GET contracts.