Texas Comptroller Glenn Hegar reminds families that open enrollment in the Texas Tuition Promise Fund, the state’s prepaid college tuition program, began Sept. 1 and runs through Feb. 28, 2021. 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, excluding medical and dental institutions.
“With everything that’s going on right now, thinking about how to pay for college may not be at the top of many parents’ minds,” Hegar said. “Yet one day it will be time to enroll your loved one in a college or university, and a Texas Tuition Promise Fund account is an additional tool to help save for your 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 most Texas public colleges and universities, excluding medical and dental institutions. Prices are based on 2020-21 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 eligible Texas public four-year university or college, cost $151.64 per unit.
Type II units, based on the weighted average cost of undergraduate-resident tuition and schoolwide-required fees across eligible Texas public four-year universities and colleges, cost $108.35 per unit.
Type III units, based on the weighted average cost of in-district tuition and schoolwide-required fees across eligible Texas public two-year community colleges, cost $28.81 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 eligible 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 6% 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. An online calculator provides pricing estimates on the type and number of units currently needed for any eligible Texas public college or university.
For more information about this prepaid college tuition program, including how the plan applies a transfer value for use at Texas medical and dental institutions, 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.