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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 BASICS



Is The Texas Tuition Promise Fund for You?

The Texas Tuition Promise Fund (Plan) offers many advantages:

  • Benefits are tax free when used to pay 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.
  • Today’s prices pay for tomorrow’s education at most Texas public colleges and universities (excluding medical and dental schools, health science centers and other health-related institutions).
  • Flexible options for every budget
  • Benefits are transferrable to another eligible Beneficiary
  • Tuition is locked in – but you’re not

Earnings are Tax Free

Any earnings on your contributions are federal tax freefederal tax free
Any earnings on prepaid tuition contracts are federal tax free if used to pay eligible tuition and required fees. Refunds of earnings on contract payments are subject to federal income taxes and may be subject to an additional 10% federal tax penalty. See Plan Description and Master Agreement for details.
if you use the Plan to pay for your Beneficiary’s tuition and required fees.

You Can Get More Out of Your Money

The Texas Higher Education Coordinating Board reports that tuition costs in Texas on average rose 72% from 2003-2009. Buy Tuition UnitsTuition 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.
now at today’s prices that can be redeemed at mot two- and four-year Texas public colleges and universities (excluding medical and dental schools, health science centers and other health-related institutions) when your Beneficiary is ready for college and don’t worry about future tuition increases.

Flexible Options and Payment Plans for any Budget

Choose from three types of Tuition UnitsTuition 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.
, starting at around $25, and multiple payment plans that fit your goals AND your pocketbook

Tuition Is Locked In – But You’re Not

If your Beneficiary doesn’t go to college or need all the units, you have several options:

  • Do a Rollover of 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.
    to a 529 college savings plan so that the money can be used for graduate school, books or room and board
  • Change the Beneficiary of the contract to a current member of Beneficiary’s familymember of Beneficiary's family
    , or the new Beneficiary must be a Texas resident or the child of a parent who is both the Purchaser and a Texas Resident.
  • Request a refund and withdraw the Refund Value of unused Tuition UnitsTuition 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.
    that have met the three-year holding period requirement or the Reduced Refund Value for units held less than three years. The earnings portion of a Refund, if any, is subject to the actuarial soundness of the Plan and is subject to federal income taxes plus a 10% federal tax as well as any state or local taxes that may appy. Refund Value does not include any state-provided or procured matching contributions or earnings thereon.

If your Beneficiary attends a Texas private school, career school, out-of-state school, medical or dental school, health science center or other 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.
towards the cost 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.
.

Start Today

If tuition inflation continues, the earlier you start, the less expensive it will be to purchase a Plan and lock 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 at Texas public colleges and universities.

Cost of Type I Tuition UnitsTuition 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.
Compared to Potential Future College Costs For One Year of Tuition


For Illustrative Purposes Only

5687-NLD-09/28/2017