Open enrollment in the Texas Tuition Promise Fund, the state’s prepaid college tuition program, begins today, Sept. 1, and runs through Feb. 29, 2016. Texas Comptroller Glenn Hegar reminds families that the Texas Tuition Promise Fund offers parents and loved ones the chance to prepay a child’s education at Texas public colleges and universities at today’s prices.
“Hard-working Texas families want the best for their kids, and securing their future educations is a big part of that — unfortunately, setting a family budget for that can be challenging,” Hegar said. “The Texas Tuition Promise Fund lets participants lock in today’s prices for their children’s educations at Texas public colleges and universities, and it has flexible options that families can use to fit their budgets.”
Participants in the Texas Tuition Promise Fund purchase prepaid “tuition units” that can later be used toward undergraduate tuition and school-wide required fees at schools ranging from Texas public community colleges to four-year, in-state universities. Prices are based on 2015-16 academic year costs for the state’s public colleges.
Type I units, priced for tuition and school-wide required fees for the most expensive public four-year school in Texas, cost $132.54 per unit.
Type II units, based on the weighted average cost of tuition and school-wide required fees across all Texas public four-year schools, cost $91.43 per unit.
Type III units, priced at the weighted average cost of tuition and school-wide required fees across all Texas public two-year schools, cost $23.35 per unit.
Under the plan, 100 units equal roughly one academic year consisting of 30 semester hours of tuition and school-wide required fees at the Texas public school that most closely matches the pricing base. Participants can purchase up to 600 Type I units, approximately six years, or the dollar equivalent of Type II and III units.
The plan’s payment options include lump sum payments, installment payments that include 8 percent interest or a pay-as-you-go plan that allows participants to gradually add more units when the family budget allows. Payments can be as low as $15 after an account is established by paying a one-time fee of $25 and purchasing at least one unit.
The Texas Tuition Promise Fund is entering its eighth year. For more information about enrolling in the prepaid college tuition program, including a calculator that can help determine the type and number of units to purchase, go to TuitionPromise.org or call 1-800-445-GRAD (4723), Option 5.