Parents can use the fund to prepay undergraduate tuition for their children, locking in public tuition rates from the 2022-2023 academic year. For Texans who apply in September or October, the $25 application fee will be waived, according to Hegar.
“Participants in the plan purchase ‘tuition units’ that can be used later toward undergraduate resident tuition and schoolwide required fees at Texas public colleges and universities, excluding medical and dental institutions. Prices are based on 2022-23 academic year costs for the state’s public colleges and universities,” the press release read.
There are three types of tuition plans, and each unit price varies.
Type I units are $164.12 per unit, based on the most expensive four-year colleges in the state. Type II units, at $113.83 a unit, are based on the average tuition at public four-year colleges in Texas.
Type III units are the least expensive at $29.48 and are based on the average tuition of two-year Texas community colleges.
One academic year is around 100 units, according to the comptroller’s press release.
“With inflation putting stress on the family pocketbook, now is the perfect time to think about a Texas Tuition Promise Fund account, which gives families an additional tool to help plan for their children’s future education,” Hegar shared.
“Planning today is a good way to put your child on a path to a college education. And, we offer three different payment plans and three tuition types to fit your budget,” he added.
The options are:
- lump-sum payments.
- installment payments with a 6% interest charge.
- pay-as-you-go payments.
Hegar explained that “the pay-as-you-go payment option allows participants to gradually add more tuition units as the family budget allows based on tuition unit prices at the time of purchase.”
To enroll in a pay-as-you-go contract, families must purchase at least one tuition unit of any type. When they do, future payments may be “as low as $15.”
To enroll in the Texas Tuition Promise Fund, Texans must meet certain age, residency, and income requirements. Once enrolled, contribution requirements also must be met.
While the fund excludes dental and medical institutions, the “transfer value” of units can be applied to these schools and at certain out-of-state universities or colleges.
An outreach team for the fund hosts occasional free webinars. These webinars share information about the fund, including how to enroll, the specific eligibility criteria, and more.
The next Texas Tuition Promise Fund webinar will be held on October 5. Enrollment in the fund is open until February 28.