Illinois Prepaid Tuition Plan Struggles as College Costs SoarI just came across the article and I figured this may pertain to some forumites. Basically, the fund is in trouble and despite what people believe, there's actually no guarantee that the state will make up shortfalls. Their solution now is to aggressively market the plan, invest in very risky assets, and project nearly 9% annual return. In reality, this means they're using new investors to pay the liabilities to old investors, and I'm quite sure there's a name for that. ;)
Surprising factoid: the $420m fund has 280 employees. I wonder if they publish an expense ratio.
