Texas Comptroller of Public Accounts
FOR IMMEDIATE RELEASE
September 2, 2021
(AUSTIN) — Texas Comptroller Glenn Hegar reminds families that enrollment in the Texas Tuition Promise Fund®, the state's prepaid college tuition program, began Sept. 1 and runs through Feb. 28, 2022. The Texas Tuition Promise Fund offers parents and loved ones the chance to prepay a child's future higher education at Texas public colleges and universities at today's prices, excluding medical and dental institutions.
“This 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 "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 institutions. Prices are based on 2021-22 academic year costs for the state's public colleges and universities.
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. There is a $25 application fee for all contract types and Texas residency requirements apply. The pay-as-you go payment option allows 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 program, including how the plan’s Transfer Value can be used at medical and dental institutions, 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.
Participation in the Texas Tuition Promise Fund does not guarantee admission to or graduation from any college or university. Only the named purchaser may direct redemptions, withdrawals, changes in the designated beneficiary or other contract changes.
Non-residents of Texas should consider whether their home state, or the beneficiary’s home state, offers its residents any state 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 529 plan.
A contract, including the amount contributed, and any amount applied as a benefit or paid as a refund, is not guaranteed, insured or treated as a deposit or other obligation by the state of Texas, the FDIC, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or Orion or its affiliates. The Contracts have not been registered with or approved by the U.S. Securities and Exchange Commission or with any state.
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. Transfer Value applies to Tuition Unit redemption at medical and dental institutions, private and out-of-state colleges and universities, career schools and registered apprenticeship programs. Transfer Value is limited to the lesser of (1) the costs the Tuition Unit would cover at a public college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount. Orion Advisor Solutions, Inc., serves as plan manager of the Plan. The Plan Description and Master Agreement contains 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 document carefully before purchasing a contract.