skip to content

Enrollment is now closed.

Newborn enrollment for children younger than 1 year of age is open through midnight CT on July 31. Prices are subject to change when the next enrollment period begins Sept. 1.

Enroll Now

Account Changes


Only the Purchaser Can Make Contract Decisions

While anyone may :  toward the payment of a Contract:  A contract under which a person the Purchaser purchases from the Board on behalf of a Beneficiary one or more tuition unit(s) that the Beneficiary is entitled to apply to the payment of the Beneficiary’s undergraduate tuition and required fees at an Eligible Educational Institution. (such as through a gift contribution), there is only one Purchaser:  The person who establishes the Contract for a specified Beneficiary. There can only be one Purchaser for each Contract. The Purchaser is responsible for making payments in a timely manner and is the only person who may direct or receive refunds, or may direct rollovers, Contract changes, and changes in the designated Beneficiary except that the Contract may be cancelled or modified by the Plan. Friends and family who contribute to another person’s account are not the Purchaser and may not prevent, direct or receive refunds, and may not direct rollovers, contract changes, or changes in the designated Beneficiary. for tax reporting and administrative purposes. Only the Purchaser can make decisions such as:

  • Choosing the type of Tuition Units:  Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure.
  • Payment method
  • Changing the Benficiary:  The person designated by the Purchaser under a Prepaid Tuition Contract as the person for whom undergraduate tuition and required fees will be paid to an Eligible Educational Institution when authorized by the Purchaser.
  • Cancelling a Contract:  A contract under which a person the Purchaser purchases from the Board on behalf of a Beneficiary one or more tuition unit(s) that the Beneficiary is entitled to apply to the payment of the Beneficiary’s undergraduate tuition and required fees at an Eligible Educational Institution.
  • Requesting a Request a Refund:  For all units held at least three years (and for contracts cancelled due to the Beneficiary’s death, disability, receipt of scholarship or admission to a U.S. Military Academy), the Purchaser will receive the Refund Value, which is an amount equal to the price you paid for the unit plus or minus adjusted net investment earnings or losses on that amount, with the earnings rate set annually by the Board at a rate that is up to 2% less than the actual net earnings, is capped at 5%, and is net of any fees due and payable. The earnings portion of a Refund is also subject to federal income taxes plus a 10% federal tax as well as any state or local taxes that may apply. Earnings may only be paid on a refund subject to the actuarial soundness of the fund. Refund Value does not include any state-provided or procured matching contributions or earnings thereon.

    For units that do not meet the three-year holding period requirement, the Purchaser will receive the Reduced Refund Value. It will be limited to the lesser of (1) the price you paid for the unit, or (2) the price you paid for the unit, plus or minus net investment earnings or losses on that amount, and is net of any fees due and payable. This means the Reduced Refund Value will not include any positive net earnings, but can be less than the purchase price if there have been periods of negative returns in the market. Reduced Refund Value does not include any state-provided or procured matching contributions or earnings thereon.
  • Deciding when and how Tuition Units are used

Generally, the Purchaser owns all rights with respect to a Contract.

Changing the Beneficiary

With the exception of Contracts owned by minor Purchasers through :  custodial accounts, the Purchaser:  The person who establishes the Contract for a specified Beneficiary. There can only be one Purchaser for each Contract. The Purchaser is responsible for making payments in a timely manner and is the only person who may direct or receive refunds, or may direct rollovers, Contract changes, and changes in the designated Beneficiary except that the Contract may be cancelled or modified by the Plan. Friends and family who contribute to another person’s account are not the Purchaser and may not prevent, direct or receive refunds, and may not direct rollovers, contract changes, or changes in the designated Beneficiary. may change the Beneficiary of a Contract upon submission of a Change of Beneficiary Form. Under Texas Law, the new Beneficiary must be a Texas resident or the child of a parent who is both a Texas resident and the Purchaser on the date the designation is changed.

The new Beneficiary must also be a “member of the family” of the preceding Beneficiary, as defined by IRS Publication 970. The Beneficiary’s family includes the Beneficiary’s spouse and any of the following other relatives of the Beneficiary:

  1. Son, daughter, stepchild, foster child, adopted child, or a descendent of any of them.
  2. Brother, sister, stepbrother, or stepsister.
  3. Father or mother or ancestor of either.
  4. Stepfather or stepmother.
  5. Son or daughter of a brother or sister.
  6. Brother or sister of father or mother.
  7. Son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.
  8. The spouse of any individual listed above.
  9. First cousin.

A change of Beneficiary might have significant gift tax or generation-skipping transfer tax consequences. You should consult with a tax advisor prior to changing the Beneficiary of your Contract.