A $222.9 million deficit caused by soured investments means investors saving for college through Pennsylvania's Guaranteed Savings Plan will have to pay more than $1 for $1 of tuition.

Effective Sept. 1, the state-run program will charge an 8 percent premium for investors purchasing tuition credits at the University of Pittsburgh and Penn State University. Premiums of 2 percent will be imposed on purchases of credits for Temple University, private colleges and Ivy League schools. There will be no premiums for Slippery Rock University and other schools that are part of the State System of Higher Education or for community colleges.

The state Treasury, which administers the program, also is imposing new fees on investors to offset the cost of running the plan.

"My goal is to mend, not end, this valuable and important program," Treasurer Robert M. McCord said in a letter to investors.

Nearly 89,000 individuals are enrolled in the program.

The guaranteed plan is one of two 529 college savings plans offered by Pennsylvania. It allows parents, grandparents and others to purchase tuition credits for future use at today's prices. The theory is that the state will be able to earn enough on the investments to cover the cost of tuition when investors redeem the credits as their children enter college.

That has generally been the case throughout the program's 16-year history. However, Wall Street's meltdown last year left the fund with a $328.7 million deficit as of Dec. 31. The market's recovery since March reduced the deficit to $222.9 million by June 30. The plan had assets of $1.1 billion, or 83 percent of the money needed to purchase the $1.3 billion in tuition investors had prepaid for, according to a report by the fund's actuary.

A year ago, the deficit was $73 million.

Under the new rates, a unit of tuition at Pitt that cost $535 in the 2008-09 school year will cost $556 for students enrolled in the 2009-10 school year and $600 if purchased for future use through the guaranteed savings plan.

The state Treasury imposed premiums of 1.8 percent to 9.7 percent in 2003 after the last bear market left the guaranteed plan saddled with a deficit. The premiums were lifted in 2006 after Wall Street recovered.

"The fund will be much stronger and will be here when families go to use their credits," said Deputy Treasurer Doug Rohanna.

He said that based on current assumptions about investment returns and tuition price increases, the premiums will eliminate the $222.9 million deficit in seven years. The state recently raised its expected investment returns to 8.25 percent annually, up from its previous forecast of 8 percent. It also lowered its assumptions about how fast tuition prices will increase.

Mr. Rohanna said investors can continue to purchase tuition at current rates through Aug. 31. Investments made through the mail must be postmarked Aug. 31 and online deposits must be made no later than 11:59 p.m. that day, he said.

Effective Oct. 1, investors in the guaranteed plan will pay an annual fee of $4.90 for every $1,000 they have invested in the plan. The state currently charges a flat $25 annual maintenance fee, which was waived for those who made automatic investments to their accounts.

Other states with guaranteed college savings plans also are facing deficits and are charging premiums or closing plans to new investors.

Pennsylvania's other 529 plan offers more than 20 portfolios based on mutual funds offered by Vanguard. Unlike the guaranteed plan, the 529 Investment Plan puts the onus for investing wisely on parents and grandparents rather than Pennsylvania's Treasury.

Both college savings plans offer federal tax advantages in that withdrawals are tax-free if used for college expenses. Contributors can also deduct up to $12,000 in investments, per child, on their Pennsylvania income tax return.