By Leo Shane III
Gannett Columbus Bureau

COLUMBUS - The Ohio Tuition Trust is trying to keep its prices down as the cost of college keeps going up.

The governing Tuition Trust Authority is considering changes in the way prices for the state's guaranteed savings fund are calculated to better reflect how much Ohio students pay for in-state colleges.

"In the past, schools would set their tuition prices once a year, so there was a lot more stability in establishing our prices," said Jackie Williams, executive director of the Tuition Trust Authority.

The state's guaranteed fund - which allows Ohioans to buy redeemable units for future college tuition - has seen nearly a 75 percent increase in per-unit cost since 2001. The latest jump came in May, when the price jumped 9 percent, from $81.50 to $89.

That price is based on the tuition rates of Ohio's 13 four-year colleges. But some colleges are changing the way they set those prices.

Miami University has announced that in 2004 it will begin charging all students a standard tuition rate, but will offer rebates to in-state students.

Trust officials want to use the rebate price - and not the full tuition cost - in their future calculations, to reflect what Ohio students will pay and to keep their unit prices down.

Several universities this year also began raising tuition above the state's 6 percent cap to collect more money for financial aid, giving the extra funds to needy students. Trust officials also want to subtract that extra percentage from their calculations.

Williams said no timetable has been set for any changes in their tuition calculation methods. Officials are still evaluating whether current tuition costs have risen sharply enough to raise unit prices this fall.

Financial experts say no matter when the calculation changes are made and what effect they have on unit costs, investors should still keep the same approach toward the guaranteed savings plan.

"You can't buy now for a child who is going to college in three years," said Kathy Kittredge, a financial adviser for Advest Inc. in Lancaster. "But for the long run, the guaranteed fund is still a viable option for parents. You need to be looking long-term."

Kittredge said the funds' rapid cost increase is simply a reflection of rapid tuition increases.

Short-term investors will lose money if they buy units now and redeem them in just a few years, she said. Unit prices have a built-in premium above the actual current cost of college.

Joe Hurley, a financial investment author and founder of savingforcollege.com, said other states' guaranteed funds have also seen price increases and tough times over the last few years, though Ohio's increases have outpaced most other funds.

"But none of them have defaulted and people in the programs are generally in the same position as they were before," he said. "If you're investing long-term and you believe tuition is going to go up substantially, it's still a good idea."

For short-term investors, Hurley suggested a combination of personal savings plans and college loans.