(AUSTIN) — Texas Comptroller Glenn Hegar reminds families that open enrollment in the Texas Tuition Promise FundSM, the state’s prepaid college tuition program, began Sept. 1 and runs through Feb. 28, 2018. The Texas Tuition Promise Fund offers parents and loved ones the chance to prepay a child’s education at Texas public colleges and universities at today’s prices.
“A Texas Tuition Promise Fund account is an opportunity to start paying for future college expenses and is a good way to give your child a path to a college education,” Hegar said. “Planning for your child’s education today helps save money on tomorrow’s expenses.”
Participants in the Texas Tuition Promise Fund purchase prepaid “tuition units” that can later be used toward undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities. Prices are based on 2017-18 academic year costs for the state’s public colleges and universities.
Type I units, priced for undergraduate resident tuition and schoolwide required fees at the most expensive Texas public four-year university, cost $137.92 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 schools, cost $97.90 per unit.
Type III units, priced at the weighted average cost of in-district tuition and schoolwide required fees across all Texas public two-year community colleges, cost $25.05 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 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 when 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. Payments can be as low as $15 after an account is established.
For more information about the prepaid college tuition program, including how the plan can be used for Texas private colleges and universities, out-of-state colleges and universities, and career schools, go toTuitionPromise.org or call 800-445-GRAD (4723), Option 5. A calculator is available on the website that provides information 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. Participation in the plan does not guarantee admission to or graduation from any college or university.
Comments or complaints may be forwarded to the Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts at P.O. Box 13407, Austin, Texas 78711-3407, or by calling 512-936-2064.