Texas Comptroller Glenn Hegar reminded families in a news release last week that open enrollment in the Texas Tuition Promise Fund, the state’s prepaid college tuition program, began at the beginning of September and runs through Feb. 29.
The Texas Tuition Promise Fund offers parents and loved ones the chance to prepay for a child’s future higher education at most Texas public colleges and universities at today’s prices.
September is National College Savings Month, so 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.
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.
Prices are based on 2019-20 academic year costs for the state’s public colleges and universities, excluding medical and dental institutions.
The type of units available through the program are:
• Type I units, priced for undergraduate resident tuition and schoolwide fees at the most expensive Texas public four-year university or college, cost $147.80 per unit.
• Type II units, based on the weighted average cost of undergraduate resident tuition and school-wide fees across all Texas public four-year universities and colleges, cost $105.54 per unit.
• Type III units, priced at the weighted average cost of undergraduate resident tuition and school-wide fees across all Texas public two-year community colleges, cost $26.84 per unit.
Under the plan, 100 units equal roughly one academic year consisting of 30 semester hours of undergraduate resident tuition and schoolwide fees at Texas public schools most closely matching the unit’s pricing base.
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 tuition program, go to Tuition-Promise.org , or call 800-445-4723, Option 5.
An online calculator available online at https://texastuitionpromisefund.wealthmsi.com/tuitionplanning/public/index.php provides estimates on the type and number of units currently needed for any Texas university.