Texas Comptroller Glenn Hegar reminds families that open enrollment in the Texas Tuition Promise Fund®, the state’s prepaid college tuition program, began Sept. 1 and runs through Feb. 29, 2020. The Texas Tuition Promise Fund offers parents and loved ones the chance to prepay a child’s future higher education at most Texas public colleges and universities at today’s prices.
“September is National College Savings Month, so now is the perfect time to think about a Texas Tuition Promise Fund account, which gives families an additional tool to help plan for their children’s future education,” Hegar said. “Planning today is a good way to put your child on a path to a college education. The sooner you start saving, the more affordable it could be.”
Participants in the plan purchase prepaid “tuition units” that can be used later toward undergraduate resident tuition and schoolwide required fees at most Texas public colleges and universities. Prices are based on 2019-20 academic year costs for the state’s public colleges and universities, excluding medical and dental institutions.
- Type I units, priced for undergraduate resident tuition and schoolwide required fees at the most expensive Texas public four-year university or college, cost $147.80 per unit.
- Type II units, based on the weighted average cost of undergraduate resident tuition and schoolwide required fees across all Texas public four-year universities and colleges, cost $105.54 per unit.
- Type III units, priced at the weighted average cost of undergraduate resident tuition and schoolwide required fees across all Texas public two-year community colleges, cost $26.84 per unit.
Under the plan, 100 units equal roughly one academic year consisting of 30 semester hours of undergraduate resident tuition and schoolwide required fees at the Texas public school that most closely matches the unit’s pricing base. Participants can purchase up to 600 Type I units — approximately six academic years — or the dollar equivalent of Type II or III units.
The plan’s flexible payment options include lump-sum payments, installment payments that include 8 percent interest or a pay-as-you-go option that allows participants to gradually add more units as the family budget allows. Enrollment requires payment of a one-time application fee of $25 and the purchase of at least one tuition unit of any type. Texas residency requirements apply. Future payments can be as low as $15 if a pay-as-you-go account is established.
For more information about this prepaid college tuition program, including how the plan can be used for Texas medical and dental institutions, Texas private colleges and universities, out-of-state colleges and universities, and career schools go to TuitionPromise.org or call 800-445-GRAD (4723), Option 5. An online calculator provides estimates on the type and number of units currently needed for any Texas public college or university.
Purchasers should carefully consider the risks, administrative fees, service and other charges and expenses associated with the contracts, including plan termination and decreased transfer or refund value. The Plan Description and Master Agreement contains this and other information about the plan and may be obtained by visiting the website or calling 800-445-GRAD (4723), Option #5. Purchasers should read these documents carefully before purchasing a contract. Neither a contract nor any return paid with a refund is insured or guaranteed.
Only the purchaser may direct rollovers, contract changes, withdrawals and changes in the designated beneficiary. Participation in the plan does not guarantee admission to or graduation from any college or university.