Texas Tuition Promise Fund turns 15; enroll before Nov. 1 and save

(AUSTIN) — The Texas Tuition Promise Fund®, the state’s prepaid college tuition plan, turns 15 this month. Texas Comptroller Glenn Hegar reminds families that enrollment in the plan began today and runs through Feb. 29, 2024.

The Texas Tuition Promise Fund offers parents and loved ones the chance to prepay for a child’s future tuition and required, schoolwide fees at Texas public colleges and universities at today’s prices, excluding medical and dental schools. To celebrate the plan’s birthday, the $25 application fee to enroll in the plan will be waived for September and October 2023. (Enrollment must be postmarked by Oct. 31, 2023.)

“Congratulations to the Texas Tuition Promise Fund on 15 years of helping families save for college,” Hegar said. “I am proud to have helped so many Texas families plan for a child’s future education. A college education can be one of the most important investments a family makes, but it can also be one of the most expensive. For 15 years, this program has given families an additional tool to manage that expense and save in a way that works for them.”

Participants in the plan purchase “tuition units” that can be used later toward undergraduate resident tuition and required, schoolwide fees at Texas public colleges and universities, excluding medical and dental schools. Prices are based on 2023-24 academic year costs for the state’s public colleges and universities.

Type I tuition units, priced for undergraduate resident tuition and required, schoolwide fees at the most expensive Texas public four-year university or college, cost $164.12 per unit.

Type II tuition units, based on the weighted average cost of undergraduate resident tuition and required, schoolwide fees across Texas public four-year universities and colleges, cost $114.60 per unit.

Type III tuition units, based on the weighted average cost of in-district tuition and required, schoolwide fees across Texas public two-year community colleges, cost $30.71 per unit.

Under the plan, 100 tuition units equal roughly one academic year consisting of 30 semester hours of undergraduate resident tuition and required, schoolwide 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 also 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 for information about how to register to attend upcoming webinars. The next webinar is Sept. 6.

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 plan manager. 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. Texas Match the Promise FoundationSM scholarships can only be used at Texas public colleges and universities, and any Transfer Value of a Match the Promise Foundation scholarship account cannot be utilized. 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.

© 2023 Texas Prepaid Higher Education Tuition Board. “Texas Tuition Promise Fund” is a registered service mark of the Texas Prepaid Higher Education Tuition Board. All rights reserved.