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.
- Inception2008
- State agencyTexas Prepaid Higher Education Tuition Board; program manager is Orion Advisor Solutions, Inc.
- Tax deduction
Investment Options
Investors in Texas Tuition Promise Fund can select from the following investment options. Click on a portfolio name for more information.
Sometimes referred to as the enrollment-based option, this is an investment approach where your asset allocation is programmed to change over time. Accounts for young beneficiaries are invested aggressively and accounts for beneficiaries with college right around the corner are invested much more conservatively. In some 529 plans, the age-based option operates by automatically transferring your investment from one static portfolio to another at certain points in time. Others utilize lifecycle funds or employ lifecycle-type tactics within the portfolio containing your investment so that it is not necessary to transfer your investment between portfolios.
