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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.

Our Ratingx

Fee Scorex

4.5 of 5



  • Program typePrepaid contract
  • Enrollment periodClosed to new enrollment.
  • Inception1996
  • State agency
    State Comptroller's Office and the Texas Prepaid Higher Education Tuition Board
  • Tax deduction
  • Program Manager
    State Comptroller's Office and the Texas Prepaid Higher Education Tuition Board

Ratings & Rankings

Our overall rating for TX residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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.'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.

Financial Benefits









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:


Contractual Features

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?


Fees & Expenses

Enrollment or application fee:


Taxes and other Benefits

  • Tax deduction for single filersNone
  • Tax deduction for joint filersNone


Texas doesn't offer tax deductions

Program match on contributions:


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?


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.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:


Distributions & Terminations

To whom are distributions made payable:

Tuition payments are made to the educational institution that the beneficiary attends; scholarship, cancellation, and private college refunds are paid to the contract purchaser and joint purchaser, if applicable.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer contract ownership ($20).