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Prepaid Plan
Prepaid Plans let you pre-pay all or part of the costs of a college education. They may also be converted for use at private and out-of-state colleges. Because of the unique structure of these plans, they are not considered in our ratings methodology.
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 type
Enrollment period
Inception
State agency
Tax deduction
For single filers: None
For joint filers: None
State residency requirements:
Who can be a participant/owner in the program?
Significant time or age restrictions imposed by the program:
Maximum contributions:
Minimum contributions:
Current value of one unit:
Current unit price:
Are program benefits backed by the full faith and credit of the state?
Are program benefits collateralized or guaranteed in any other way?
Enrollment or application fee:
Tax deduction for single filers:
Tax deduction for joint filers:
Note:
Program match on contributions:
State tax deduction or credit for contributions:
State tax treatment of qualified distributions:
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?
Is there a rewards program or outside scholarship program that works with this program?
Statutory protection of an account from creditors:
To whom are distributions made payable:
Policy regarding participant/owner changes:
Does participant have online password-protected access to account?
Can the complete enrollment process including funding be done online?
Telephone:
A good place to start:
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Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.