The deadline for families in Texas to enroll their newborns in the Texas Tuition Promise Fund is approaching, according to a press release from the Texas comptroller of public accounts. The deadline to apply for newborns, either 1-year-old or younger, is July 31. The deadline for children older than 1 year has already passed; it was on February 28.
“With the Texas Tuition Promise Fund, participants can purchase tuition units and lock in the costs of undergraduate resident tuition and schoolwide-required fees at Texas public colleges and universities, excluding medical and dental institutions, based on today’s prices,” the press release states.
Enrollment allows future college students to pay the price of 2021-22 Texas tuition. The plan can be used for attendance at more than just public colleges in the state. It can also be used at some private universities, out-of-state colleges, apprenticeship programs, and career schools.
For these learning institutions, enrollees cannot lock in a tuition rate but will receive payouts based on the Transfer Value.
Transfer Value refers to the way that the plan’s tuition units can be exchanged for payouts at these institutions. The value is limited to either the costs that a tuition unit would cover at a public institution, or the purchase price of the tuition unit plus or minus the earnings or losses from the net investment into the plan, whichever is less.
Glenn Hegar, the Texas Comptroller, shared it is never too early to consider enrolling newborns in this program.
“With Texans grappling with inflation and an uncertain economy, purchasing tuition units today allows families to lay the foundation for their children’s future educational opportunities,” Hegar said.
Families with a Texas Tuition Promise Fund purchase units, the Promise Fund website explains, which correlate to credit hours. In general, 100 units would equate to 30 hours of classes at a Texas college or university.
“It’s easy to open a Texas Tuition Promise Fund account,” the website shares. “And, the sooner you start, the more affordable a college education could be.”
The Texas Tuition Promise Fund is part of the state’s taxpayer-funded Section 529 Prepaid Tuition Plan and is administered by the Texas Prepaid Higher Education Tuition Board.
The Texas comptroller is part of the board, according to the comptroller website. There are also two members appointed by the governor and four members chosen by the lieutenant governor. Out of those four, the speaker of the House of Representatives has to recommend two, the website states.
The Texas Prepaid Higher Education Tuition Board administers other taxpayer-funded tuition assistance programs and “tax-advantaged” plans. In addition to the Promise Fund, the board oversees the Texas Guaranteed Tuition Plan, Texas College Savings Plan, Texas LoneStar 529 Plan, and the Texas ABLE Program.
“The Board also administers the Texas Save and Match Program, a savings match program to award scholarships from appropriated funds,” according to the comptroller website.
The Texas Tuition Promise Fund does not cover graduate school tuition or related costs, but the Texas College Savings Plan can.
The deadline for newborn enrollment in the Promise Fund is July 31. The enrollment period to lock in 2022-23 college costs will start on September 1.
