December 15, 2021

Texas Comptroller’s Office Announces Changes to the Texas College Savings Plan

(AUSTIN) — Comptroller Glenn Hegar announced today the Texas College Savings Plan (Plan)®, the state’s direct-sold college savings plan, is lowering fees and enhancing its investment lineup. These changes were effective Dec. 13:

• The current Blended and Index Age-based Portfolios will be streamlined into a single set of Age-based Portfolios;
• The Age-based Option will be expanded from six to 10 Age-based Portfolios to provide a smoother investment glide path;
• The Static and Individual Fund Portfolios will be reorganized as Risk-based and Individual Asset Class Portfolios; and
• New portfolios will be added within the Risk-based and Individual Asset Class Portfolios to offer more variety with the investment lineup.

The Plan also is reducing the program management fee and state administrative fee and using investments with lower estimated underlying investment expenses, resulting in significantly lower estimated total plan fees.

Please refer to the Transition Guide and updated Plan Description and Savings Trust Agreement on our website at TexasCollegeSavings.com for more detailed information about the changes.

The Plan has $757 million in total assets, with an average account size of approximately $20,227 (as of Sept. 30, 2021).

The Texas College Savings Plan is administered by the Texas Prepaid Higher Education Tuition Board, with assistance from the Comptroller’s office.

Texas College Savings Plan account withdrawals, including any earnings, are not subject to federal income tax if used for qualified education expenses. 

For more information on the Plan, including investment options, fees and opening an account, call 844-445-4733, Option #3 or visit TexasCollegeSavings.com. 

The Texas College Savings Plan® (“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 participants in the Plan should consult a legal, financial, or tax advisor before investing. Fees and charges for the most recent quarter are available on our website at: TexasCollegeSavings.com/expenses.

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.

An account could lose money including the principal invested. No part of an account is a deposit or obligation of, or is guaranteed or insured by, the Board, the state of Texas, or any agency or agent thereof. Interests in the Plan have not been registered with or approved by the SEC or any state. Investors should carefully consider the investment objectives, risks, fees, charges, and expenses associated with municipal fund securities. The Board may suspend, modify, or terminate the Plan or change investment approaches, offerings, and/or underlying investment funds at any time and without the consent of account owners or beneficiaries. The Plan Description and Savings Trust Agreement contains this and other important information about the Plan and may be obtained by visiting TexasCollegeSavings.com or calling 800-445-GRAD (4723), option #3. Investors should read all Plan documents carefully before investing.

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