Enrollment now open for state's prepaid college tuition program

The Texas Tuition Promise Fund, the state’s prepaid college tuition program, turns 10 years old this month. Texas Comptroller Glenn Hegar today reminds families that open enrollment for the program began Sept. 1 and runs through Feb. 28, 2019.

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. Since the program began in September 2008, more than 41,800 individuals have opened Texas Tuition Promise Fund accounts.

“Congratulations to the Texas Tuition Promise Fund for 10 years of helping families save for college,” Hegar said. “Those who have put a loved one or themselves through college understand it’s one of the most expensive investments they’ll ever make. This program gives families an additional tool to help plan for their children's future education.”

Participants in the plan purchase prepaid "tuition units" that can be used later toward undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities. Prices are based on 2018-19 academic year costs for the state's public colleges and universities.

Type I units, priced for undergraduate resident tuition and schoolwide required fees at the most expensive Texas public four-year university or college, cost $142.74 per unit.

Type II units, based on the weighted average cost of undergraduate resident tuition and schoolwide required fees across all Texas public four-year universities and colleges, cost $101.95 per unit.

Type III units, priced at the weighted average cost of undergraduate resident tuition and schoolwide required fees across all Texas public two-year community colleges, cost $25.64 per unit.

Under the plan, 100 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 unit's pricing base. Participants can purchase up to 600 Type I units — approximately six academic years — or the dollar equivalent of Type II or III units.

The plan's flexible payment options include lump-sum payments, installment payments that include 8 percent interest or a pay-as-you-go option that allows participants to gradually add more units as the family budget allows. Enrollment requires payment of a one-time application fee of $25 and the purchase of at least one tuition unit of any type. Texas residency requirements apply. Future payments can be as low as $15 if a pay-as-you-go account is established.

For more information about this prepaid college tuition program, including how the plan can be used for Texas private colleges and universities, out-of-state colleges and universities, and career schools, go to TuitionPromise.org or call 800-445-GRAD (4723), Option 5. A calculator is available on the website that provides estimates on the type and number of units currently needed for any Texas public college or university.

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. The Plan Description and Master Agreement contains this and other information about the plan and may be obtained by visiting the website or calling 800-445-GRAD (4723), Option 5. Purchasers should read these documents carefully before purchasing a contract. Participation in the plan does not guarantee admission to or graduation from any college or university.

Comments or complaints may be forwarded to the Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts at P.O. Box 13407, Austin, Texas 78711-3407, or by calling 512-936-2064.