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Texas Tuition Promise Fund
Texas
With the Texas Guaranteed Tuition Fund closed to new enrollment, this unit-based prepaid plan steps in to provide Texas families with an opportunity to prepay future tuition and mandatory fees at Texas public institutions. By shifting the tuition risk to the state's public universities and colleges (under Texas law), the program is able to offer units at current tuition levels.
5-Cap Rating
| Resident: |  |
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| Non-Resident: | 
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Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)
| Financial benefits | Safety | Features | Reliability |
|---|---|---|---|
| 4.5 | 4.5 | 4.0 | 4.0 |
General
Did you know?
Residents are not limited to investing in their own state's plan. Another state may offer a plan that performs better and has lower fees. If there is no tax break offered for in-state investors ... shop around!
Also, the plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
Program type:
Prepaid unit
Telephone:
1-800-445-4723
Web site:
How to enroll:
Enroll directly with the program.
Initial year of operation:
2008
Enrollment period:
September 1 thru February 28. First payment is due on the following May 1.
State agency(ies):
Texas Prepaid Higher Education Tuition Board; program manager is OFI Private Investments, Inc., an affiliate of OppenheimerFunds.
Eligibility
State residency requirements:
The beneficiary must be a Texas resident or have a parent who is a Texas resident and is the named purchaser at the time of enrollment.
Who can be a participant/owner in the program?
Individuals at least 18 years old, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program:
The beneficiary may not use the tuition units within three years of the date the units were purchased. Tuition units must be used within ten years after the projected date of high school graduation, excluding any periods of active duty service in the United States Armed Forces.
Contributions
Maximum contributions:
Approximately $69,552 based on 2012-2013 enrollment period pricing.
Minimum contributions:
One unit initially; subsequent purchases must be at least $15. Extended payment plans are available.
Contractual Features
Current value of one unit:
Same as current unit price if used for in-state public institution; the lesser of in-state value or contributions-plus-earnings if used for private or out-of-state institution.
Current unit price:
Type I (highest-cost Texas 4-year public): $115.92
Type II (average cost of Texas 4-year publics): $82.92
Type III (average cost of Texas 2-year publics): $21.39
Are program benefits backed by the full faith and credit of the state?
No
Are program benefits collateralized or guaranteed in any other way?
Under Texas law the public colleges in Texas must accept less than full tuition and fees if the fund’s investment return fails to keep pace with tuition and fee increases.
Fees & Expenses
Enrollment or application fee:
$25
Taxes and other Benefits
Program match on contributions:
Premium subscription required for this data.
State tax deduction or credit for contributions:
Not applicable. Texas does not have a personal income tax.
State tax treatment of qualified distributions:
Not applicable. Texas does not have a personal income tax.
Does the sponsoring state exclude the value of an account for state financial aid purposes?
Yes
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
No
Does the program have a formal agreement with a rewards program or outside scholarship program?
No
Statutory protection of an account from creditors:
Premium subscription required for this data.
Distributions & Terminations
To whom are distributions made payable:
Tuition payments are made to the educational institution that the beneficiary attends.
Account Changes
Policy regarding participant/owner changes:
Accepts requests to transfer contract ownership.
Documents, Access & Reporting
Does participant have online password-protected access to account?
Yes
Can the complete enrollment process including funding be done online?
Yes
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