(AUSTIN) — Texas Comptroller Glenn Hegar reminds families that enrollment in the Texas Tuition Promise Fund®, the state’s prepaid college tuition plan, began Sept. 1 and runs through Feb. 28, 2023. 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. The $25 application fee to enroll in the plan will be waived for September and October enrollments (must be postmarked by Oct. 31, 2022).
“With inflation putting stress on the family pocketbook, now is the perfect time to think about a Texas Tuition Promise Fund account, which gives families an additional tool to help plan for their children’s future education,” Hegar said. “Planning today is a good way to put your child on a path to a college education. And, we offer three different payment plans and three tuition types to fit your budget.”
Participants in the plan purchase “tuition units” that can be used later toward undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities, excluding medical and dental institutions. Prices are based on 2022-23 academic year costs for the state’s public colleges and universities.
Type I tuition units, priced for undergraduate resident tuition and schoolwide required fees at the most expensive Texas public four-year university or college, cost $164.12 per unit.
Type II tuition units, based on the weighted average cost of undergraduate resident tuition and schoolwide required fees across Texas public four-year universities and colleges, cost $113.83 per unit.
Type III tuition units, based on the weighted average cost of in-district tuition and schoolwide required fees across Texas public two-year community colleges, cost $29.48 per unit.
Under the plan, 100 tuition 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 tuition unit’s pricing base. Participants can purchase up to 600 Type I tuition units — approximately six academic years — or the dollar equivalent of Type II or III tuition units.
The plan has flexible payment options with each contract, including lump-sum payments, installment payments that include a 6 percent interest charge or pay-as-you-go payments. The pay-as-you go payment option allows participants to gradually add more tuition units as the family budget allows based on tuition unit prices at the time of purchase. Enrollment in a pay-as-you-go contract requires purchase of at least one tuition unit of any type; future payments can be as low as $15. An online calculator provides pricing estimates on the type and number of tuition units currently needed for any two- or four-year Texas public college or university.
For more information about this prepaid college tuition plan, including Texas residency requirements, how the plan’s Transfer Value can be used at medical and dental institutions, private and out-of-state colleges and universities, career schools and registered apprenticeship programs, go to TuitionPromise.org or call 800-445-GRAD (4723), option 5.
The plan’s outreach team also offers free webinars to provide an overview of the plan and discuss the different tuition unit types and payment options, as well as provide information about the Texas Match the Promise Foundation℠ matching scholarship opportunities. Go to the Texas Tuition Promise Fund website for information about how to register to attend upcoming webinars. The next webinar is Sept. 7.
Residency restrictions, age requirements, eligibility criteria, household income restrictions and contribution requirements apply.