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Texas Tuition Promise Fund
This unit-based prepaid plan provides 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.
- Program typePrepaid unit
- Enrollment periodSeptember 1 thru February 28 (July 31 for newborns.) First payment is due on the following May 1.
- State agencyTexas Prepaid Higher Education Tuition Board; program manager is NorthStar Financial Services Group, LLC
- Tax deduction
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 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.
Did you know?
529 plan contributions grow tax-free.
Withdrawals are tax-free when used to pay for qualified higher education expenses.
You can contribute as much as you want, as often as you want.
The key is to get started. Enroll today by completing a quick form online.
Maximum contributions:Approximately $85,644 based on 2018-2019 enrollment period pricing.,
Minimum contributions:One unit initially; subsequent purchases must be at least $15. Extended payment plans are available.
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:Tuition Unit prices for the 2018-2019 enrollment period are:
Type I (highest-cost Texas 4-year public): $142.74
Type II (average cost of Texas 4-year publics): $101.95
Type III (average cost of Texas 2-year publics): $25.64
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
- 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?No
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
Did you know?
Residents are not limited to investing in their own state's 529 plan.
Another state may offer a plan that performs better and has lower fees.
The 529 plan chosen does not affect which state the student enrolls in.
You can live in New York, open a plan from Nevada and send a student to college in Florida.
The best way to maximize your college savings?
Start early and save often. You can get started today with easy online enrollment.