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IMPORTANT NOTICE: The Texas Tuition Promise Fund is established and maintained by the Texas Prepaid Higher Education Tuition Board. The Texas Sunset Advisory Commission performs periodic reviews of most state agencies. The Commission is currently reviewing the mission and performance of the Board. For information on how to provide comments or suggestions to Sunset staff on the Board’s mission, operations or services, please click here.

Plan

What is the Texas Tuition Promise Fund?

The Texas Tuition Promise Fund is designed to help families and individuals prepay for all or some future tuition and required feesrequired fees
Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study.
at most two- or four-year Texas public college or university (excluding medical and dental schools, health science centers and other health-related institutions). Account holders purchase Tuition Units, which represent a fixed amount of undergraduate resident tuition and required feesrequired fees
Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study.
charged by Texas public colleges and universities (excluding medical and dental schools, health science centers and other health-related institutions). The number of units needed varies depending on the school, but generally 100 units represents 30 semester hours, which is considered to be one academic year.

Who can open an account?

Any U.S. citizen or legal resident 18 years and older can open an account, as long as the Beneficiary is a Texas resident. If the child is not a Texas resident, a parent must be the Purchaser and a resident of Texas. Charities that award scholarships may also open an account.

Where can I use the units?

Tuition Units can be used at most two- or four-year Texas public college or university (excluding medical and dental schools, health science centers and other health-related institutions). If your child attends a private or out-of-state college, career school, medical or dental school, health science center or health-related institution where tuition and fees are not locked in, you can apply the Transfer ValueTransfer Value
Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon.
of your units toward the cost of tuition and required fees. If your needs change, you can also switch the Beneficiary to another member of Beneficiary’s family or request a refund. The new Beneficiary must be a Texas resident or the child of a parent who is both the Purchaser and a Texas Resident.

When can I enroll?

You may enroll in the Plan any time between September 1st and February 28th (February 29th in leap years). NewbornsNewborns
For Beneficiaries under one year of age on the date of enrollment in the Plan, the enrollment period is extended through July 31.
can be enrolled through July 31 each year. Tuition rates are subject to change at the start of each Enrollment Period on September. 1. There is a three-year holding period before any units can be redeemed and the Tuition Units must be paid in full prior to redemption.

Why is this a good deal?

Texas law requires most Texas two-year and four-year public colleges and universities to accept the Plan as payment for the applicable portion of tuition and required feesrequired fees
Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study.
. If your Beneficiary uses the units to attend a Texas public college or university (excluding medical and dental schools, health science centers and other health-related institutions), market fluctuationsmarket fluctuations
Market fluctuations will impact the value of tuition units that are transferred to another 529 plan, are used at schools that are not Texas public colleges or universities, or are refunded.
will not affect the future value of those Tuition Units. Prices start around $25 for a Type III unit. Tuition rose 72%72%
The Texas Higher Education Coordinating Board reports that from Fall 2003 to Fall 2009 the statewide average total academic charges for a student taking 15 credit hours at a Texas public university increased 72 percent.
at Texas public schools from 2003-2009, so you can avoid any future tuition hikes at those schools by locking in tuition and required feesrequired fees
Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study.
at today’s prices. The Plan also offers federal tax benefits and flexible payment options. And even though family and friends can help you save, you – the account holder – have sole control over the account, including how the units are used.

How can I get started?

You can enroll online or you can mail in an application. First decide what plan is best for
your needs and budget, what tuition unit types you’d like to buy and how you’d like to pay for the units. The Pricing Guide and Calculator are useful tools in comparing unit prices and redemption values.

To enroll, you should first read the Plan Description and Master Agreement and then gather some basic information about yourself and your Beneficiary, including Social Security number and birth date. Enrollment takes as little as 15 minutes and, after a $25 enrollment fee and the purchase of one unit, future contributions can be as little as $15.

About the Plan

The Plan does not pay for graduate school, room and board, transportation, books, or laboratory fees, fees that are not school-wide required fees, or fees required for a specific course. You might consider Texas College Savings Plan account that could be used for those costs.

Established by the State of Texas

The Plan is offered by the Texas Prepaid Higher Education Tuition Board. NorthStar Financial Services Group, LLC is the plan manager.

You should read the Plan Description and Master Agreement before enrolling in the Plan.