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(AUSTIN) — Texas Comptroller Glenn Hegar reminds families that enrollment in the Texas Tuition Promise Fund®, the state’s prepaid college tuition plan, began Sept. 1 and runs through Feb. 28, 2025.
The Texas Tuition Promise Fund offers parents and loved ones the chance to prepay a child's future undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities at today's prices, excluding medical and dental schools. The $25 application fee to enroll in the plan will be waived for September and October enrollments. (Enrollments by mail must be postmarked by Oct. 31, 2024.)
“As families all over Texas embark on a new school year, now is the perfect time to think about the Texas Tuition Promise Fund, 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, the more affordable it could be."
Participants in the plan purchase “tuition units” that can be used later toward undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities, excluding medical and dental schools. Prices are based on 2024-25 academic year costs for the state's public colleges and universities.
- Type I tuition units, priced for undergraduate resident tuition and schoolwide required fees at the most expensive Texas public four-year university or college, cost $164.92 per unit.
- Type II tuition units, based on the weighted average cost of undergraduate resident tuition and schoolwide required fees across Texas public four-year universities and colleges, cost $115.75 per unit.
- Type III tuition units, based on the weighted average cost of in-district tuition and schoolwide required fees across Texas public two-year community colleges, cost $31.58 per unit.
Under the plan, 100 tuition 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 tuition unit's pricing base. Participants can purchase up to 600 Type I tuition units — approximately six academic years — or the dollar equivalent of Type II or III tuition units.
The plan has flexible payment options with each contract, including lump-sum payments, installment payments that include a 6 percent interest charge, or pay-as-you-go payments. The pay-as-you-go payment option enables participants to gradually add more tuition units as the family budget allows based on tuition unit prices at the time of purchase. Enrollment in a pay-as-you-go contract requires purchase of at least one tuition unit of any type; future payments can be as low as $15. An online calculator provides pricing estimates on the type and number of tuition units currently needed for any two- or four-year Texas public college or university.
For more information about this prepaid college tuition plan, including Texas residency requirements and how the plan’s Transfer Value can be used at medical and dental schools, private and out-of-state colleges and universities, career schools and registered apprenticeship programs, go to TuitionPromise.org or call 800-445-GRAD (4723), option 5.
The plan’s outreach team offers free webinars to provide an overview of the plan and discuss the different tuition unit types and payment options, as well as provide information about the unique Texas Match the Promise Foundation℠ scholarship opportunities. Go to the Texas Tuition Promise Fund website to register to attend upcoming webinars. The next webinar is Sept. 11.
Residency restrictions, age requirements, eligibility criteria, household income restrictions and contribution requirements apply.
The Texas Tuition Promise Fund® (“Plan”) is administered by the Texas Prepaid Higher Education Tuition Board (“Board”). Orion Advisor Solutions, Inc. is the manager of the Plan, which is maintained by Catalis Regulatory and Compliance, LLC, who is not affiliated with Orion. The Plan and the Board do not provide legal, financial, or tax advice and you should consult a legal, financial, or tax advisor before participating.
Non-residents of Texas should consider whether their home state, or the beneficiary’s home state, offers its residents any tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for participants in that state’s plan.
Participation in the Plan does not guarantee admission to or graduation from any college or university. Only the purchaser may direct redemptions, withdrawals, changes in beneficiary, or other contract changes.
You may lose money by participating in the Plan. No part of a contract is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. The contracts have not been registered with or approved by the SEC or any state. Purchasers should carefully consider the risks, fees, charges, and expenses associated with contracts, including Plan termination and reduced Transfer or Refund Value. Transfer Value applies to redemptions at Texas private colleges and universities, out-of-state colleges and universities, medical and dental schools, career schools, and registered apprenticeship programs and is the lesser of: (1) the costs the units would cover at a Texas public college or university; or (2) the original purchase price of the units plus or minus the Plan’s net investment earnings or losses on that amount. The Plan Description and Master Agreement contain this and other information about the Plan and may be obtained by visiting TuitionPromise.org or calling 800-445-GRAD (4723), option 5. Purchasers should read the Plan Description and Master Agreement, and all other Plan documents carefully before purchasing a contract.
© 2024 Texas Prepaid Higher Education Tuition Board. “Texas Tuition Promise Fund” is a registered mark of the Texas Prepaid Higher Education Tuition Board. All rights reserved.
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