Texas Comptroller Susan Combs is reminding parents they can begin enrolling in the Texas Tuition Promise Fund®, the state’s prepaid college tuition program. Open enrollment began this month and runs through Feb. 28, 2014.
“Saving for college is a very important part of family budgets,” Combs said. “The Texas Tuition Promise Fund offers parents the chance to prepay for their child’s education at Texas public colleges and universities at today’s prices. The fund has flexible options that families can utilize to fit their budgets.”
Families in the Texas Tuition Promise Fund purchase prepaid “tuition units” that can later be used toward undergraduate tuition and required fees at schools ranging from Texas public community colleges to four-year, in-state universities. Prices are based on 2013-14 academic year costs for the state’s public colleges.
Type I units, priced for tuition and required fees for the most expensive public four-year school in Texas, cost $118.06 per unit. Type II units, based on the weighted average cost of tuition and required fees across all Texas public four-year schools, cost $85.10 per unit.
Type III units, priced at the weighted average cost of tuition and required fees across all Texas public two-year schools, cost $21.71 each. Under the plan, 100 units equal roughly one academic year consisting of 30 semester hours of tuition and required fees at the Texas public school that most closely matches the pricing base. Families can prepay for up to six years (600 Type I units or the equivalent amount of Type II and III units) of undergraduate tuition and required fees.
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 parents 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 sixth year. For more information about enrolling in the prepaid college tuition program, including a college cost calculator, go to www.TexasTuitionPromiseFund.com or call 1-800-445-GRAD (4723), Option 5.