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Texas Guaranteed Tuition Plan
The Texas Guaranteed Tuition Plan, a prepaid tuition plan has stopped accepting new enrollments. However, Texas residents may invest in the Texas Tuition Promise Fund, a unit-based prepaid plan that enables families to prepay future tuition and mandatory fees at Texas public institutions.
- Program typePrepaid contract
- Enrollment periodClosed to new enrollment.
- State agencyState Comptroller's Office and the Texas Prepaid Higher Education Tuition Board
- Tax deductionTax deduction for single filers NoneTax deduction for joint filers None
Ratings & Rankings
Our overall rating for non-residents
This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
State residency requirements:The beneficiary must be a Texas resident for at least 12 months prior to application or a non-resident child of an account owner who is a Texas resident.
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 must not have graduated from high school at the time of enrollment. Contract benefits must be used within a 10-year period beginning on the date the beneficiary is projected to graduate from high school, with extensions granted for military service.
Minimum contributions:UNLOCK PRO
Contract prices:In the last (2003) enrollment period, prices ranged from $1,766 for a one-year community college contract to $65,391 for a five-year private university contract. Installment payment contracts were available.
Available tuition packages:Junior college plan, senior college plan, junior/senior plan, or a private college plan (the minimum purchase is one year of tuition and fees except for the junior/senior plan which requires a purchase of a four-year contract).
Benefits for beneficiary attending private or out-of-state institution:Average public tuition and fees (for public school contracts) or estimated average tuition and fees (for private school contracts). A $25 out-of-state fee is deducted from distributions to educational institutions outside the state of Texas. A refund may be requested under the private college contract if actual private college tuition is less than the Texas private college tuition rate.
Contract payment options:Lump sum, 5-year or 10-year annual or monthly payment plan, or extended annual or monthly payment plan that ends when child graduates from high school.
Are program benefits backed by the full faith and credit of the state?Yes, in the event the program does not have sufficient funds to pay college tuition, the first available revenues of the state will be transferred into the the program.
Are program benefits collateralized or guaranteed in any other way?No
Fees & Expenses
Enrollment or application fee:$50
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Texas doesn't offer tax deductions
Program match on contributions:UNLOCK PRO
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?Yes, the program offers in-state tuition rates to Texas beneficiaries who subsequently move out of Texas.
Does the program have a formal agreement with a rewards program or outside scholarship program?Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
Statutory protection of an account from creditors:UNLOCK PRO
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