PLAN TYPES

Plan Pricing Basics

College planning begins with a single question: “What is the right college savings plan for my child – and for my budget?” The Texas Tuition Promise Fund created three pricing levels (“Tuition Unit Types”) to address the different needs of young Texans and their parents.

What Is a Tuition Unit and What Does it Buy?

Three Ways to Build Toward Their Future Education

Tuition Units represent a fixed amount of undergraduate resident tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. charged by Texas public colleges and universities, excluding medical and dental institutions. Sales prices change September 1 of each year. Tuition Unit prices for the 2023-2024 enrollment period are:

Type I = $164.12
Type II = $114.60
Type III = $30.71

At the back of the Pricing Schedule and Redemption Guide, you will find information on the number of each type of tuition unit necessary to cover one academic year’s tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at most Texas public colleges and universities, excluding medical and dental institutions.

TYPE I Units

100 units = 30 semester hours = 1 academic year at the most expensive Texas public college or university^{* Note: Some college and universities, and certain programs, may require more than 30 semester hours per school year.}

Type I Units can be used to pay for undergraduate resident tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at the most expensive four-year Texas public college or university. All other public colleges in Texas will require less than 100 Type I Units for an academic year consisting of 30 hours. See the Pricing Schedule and Redemption Guide for more information. If the cost per semester hour at your child’s school is less than the cost at the most expensive public institution, the unused Tuition Units will remain in your account for future use or they can be refunded or transferred to another qualified Beneficiary.

TYPE II Units

100 units = 30 semester hours = 1 academic year at the weighted average cost of 4-year Texas public colleges and universities^{* Note: Some college and universities, and certain programs, may require more than 30 semester hours per school year.}

Should your budget not allow for Type I Units, you may want to consider the less expensive Type II Tuition Units. Type II Units can be redeemed to pay the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of undergraduate tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. charged to full-time in-state students at eligible four-year public colleges and universities in Texas.

Purchasing Power of Type II Units

No matter how high tuition costs have risen in Texas, if your child attends a Texas public college or university that is at or below the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition when your child starts college, 100 Type II Tuition Units will fully cover tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. for 30 semester hours. The actual “purchasing power” of Type II Units will vary depending on the college or university your Beneficiary attends and the extent to which its costs are above or below the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. at eligible four-year Texas public institutions. Because Type II Units represent the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at eligible Texas public four-year colleges or universities, some will require more than 100 Type II Units and some will require less than 100 Type II Units for one academic year (30 semester hours) of undergraduate resident tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. If the cost per semester hour at your child’s school is higher than the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. or if your child takes more than 30 semester hours, you will have to use more Tuition Units or pay the difference. However, if the cost per semester hour at your child’s school is lower than the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. the unused Tuition Units will remain in your account for future use or they can be refunded or transferred to another qualified Beneficiary.

TYPE III Units

100 units = 30 semester hours = 1 academic year at a 2-year Texas public college or university with tuition prices at the weighted average cost^{* Note: Some college and universities, and certain programs, may require more than 30 semester hours per school year.}

The least expensive of the three unit types, Type III Units can be redeemed to pay the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of in-district undergraduate resident tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at eligible two-year public colleges in Texas charged to residents of the taxing jurisdiction of the two-year public college.

Purchasing Power of Type III Units

As with Type II Units, no matter how high tuition has risen in Texas, if your child attends a Texas two-year public college that is at or below the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. when your child starts college, 100 Type III Tuition Units will fully cover tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. for 30 semester hours assuming your child resides within the taxing jurisdiction of the college. Because Type III Units represent the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at eligible Texas two-year public colleges, some will require more than 100 Type III Units and some will require less than 100 Type III Units for one academic year (30 semester hours) of undergraduate resident tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. Redemption value assumes your Beneficiary resides within the taxing jurisdiction of the Texas two-year public college. If the cost per semester hour at your child’s school is higher than the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. or if your child takes more than 30 semester hours, you or the Beneficiary will have to pay the difference. However, if the cost per semester hour at your child’s school is lower than the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. of tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. the unused Tuition Units will remain in your account for future use or they can be refunded or transferred to another qualified Beneficiary. The Tuition Unit Pricing Schedule and Redemption Guide and Tuition Planning Calculator allow you to view information comparing the current redemption value of different types of units at Texas public colleges and universities.

^*Some college and universities, and certain programs, may require more than 30 semester hours per school year.

How Far Do the Tuition Units Go?

Any type of Tuition Unit can be redeemed for undergraduate resident tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. at almost any Texas public two-year or four-year college or university, excluding medical and dental institutions.

4-Year or 2-Year University/College	Tuition and Schoolwide Required Fees – 2023-2024 Academic Year	# of Units Required^* for 30 semester hour academic year.
		Type I	Type II	Type III
University of Texas at Dallas-Fixed Tuition	$16,412.00	100.00	143.21	534.42
University of Texas at Austin-McCombs School of Business-Fixed Tuition	$15,756.00	96.00	137.49	513.06
University of Texas at Arlington-College of Liberal Arts-Visual and Performing Arts-Fixed Tuition	$14,202.00	86.53	123.93	462.46
Texas A&M University-College Station-College of Biological and Agricultural Engineering-Fixed Tuition	$14,409.70	87.80	125.74	469.22
Texas Tech University-Rawl's College of Business Administration-Traditional	$13,657.00	83.21	119.17	444.71
Texas State University-Fixed Tuition	$12,777.40	77.85	111.50	416.07
Tarleton State University-School of Engineering-Stephenville Campus-Fixed Tuition	$12,231.00	74.52	106.73	398.27
Lamar University-Fixed Tuition Plan	$11,340.30	69.10	98.96	369.27
Blinn College-Brenham Campus (In District)	$4,530.00	27.60	39.53	147.51
Trinity Valley Community College (In District)	$2,640.00	16.09	23.04	85.97
^*Number of units required for 30 semester hour academic year

See the Tuition Planning Calculator for more information on redemption value at other Texas public colleges and universities.

Fitting the Plan to Your Needs, Goals and Budget

Here are some commonly cited examples of how to customize the Plan to your circumstances.

Scenario 1

I have the resources to prepay for my child’s four-year college tuition at a Texas public college or university. I like the idea of prepaying tomorrow’s tuition at today’s prices and I don’t want to worry about having to pay additional costs for tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. when my child starts school.

Options: A lump sum payment for 400 Type I Tuition Units will purchase tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. for four academic years of 30 semester credit hours each at up to the most expensive Texas public college or university. If your child goes to a less expensive Texas public school, fewer units would need to be redeemed for 30 semester credit hours.
Comments: If the units are used at a medical and dental institution, private or out-of-state college or university, career school or apprenticeship program where tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. are not locked in, the redemption value of your tuition units would be based on the Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon.

Scenario 2

My budget is very tight, but I would like to get started saving for my child to go to college.

Options: The Pay-As-You-Go option allows you to contribute as much as you can whenever you can. You must first establish an account by paying the $25 administrative fee and purchasing at least one unit of any type. Then you can send payments at whatever frequency and amount that works for your budget, as long as each payment is at least $15.
Comments: While the Pay-As-You-Go Plan offers the flexibility to purchase Tuition Units on your schedule, the price will be based on the Tuition Unit price in effect when your payment is received, and will change from enrollment period to enrollment period.

Scenario 3

Based on my budget, I have a set amount that I can contribute each month to save for my child’s college. Is there a way for me to lock-in today’s tuition prices, but pay for the Tuition Units over an extended period of time? If so, how long do I have to pay for the units?

Options: You can open an installment contract, which will allow you to lock-in today’s prices. You will pay a finance charge of 6% in addition to the unit price. You can finance the account for five years, 10 years, or the number of years until your child is projected to graduate from high school.
Comments: There is no prepayment penalty for early payment. If you pay the account off early, the finance charge is reduced based on the number of remaining payments at the time of prepayment.

Scenario 4

I received a tax refund and would like to spend a specified amount today to purchase however many Tuition Units I can. Then I would like to add additional units in the future as funds become available. Is that possible?

Options: You can purchase tuition units today based on the Lump Sum amount that you have to spend now and then continue to add to the account over time with the Pay-As-You-Go Plan: This payment plan allows you to purchase as many or as few tuition units as you like on a schedule that you choose. Note, tuition units purchased using the Pay-As-You-Go Plan can cost more in the future, because tuition unit prices are adjusted annually. as funds are available.
Comments: While the Pay-As-You-Go Plan offers the flexibility to purchase Tuition Units on your schedule, the price will be based on the Tuition Unit price in effect when your payment is received, and will change from sales period to sales period.

Scenario 5

Is there a way that other family members or friends can help purchase Tuition Units: Tuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. for my child?

Options: There is a gifting and contribution form, which you can send to family members or friends to let them know how to contribute to your child’s account.
Comments: You must first establish an account by paying the $25 administrative fee and purchasing a minimum of one unit of any type. Account holders retain sole control of the account.

Scenario 6

Does it matter what type of units I purchase?

Options: Any type of units can be redeemed at any Texas public college or university. The number of units required will vary depending on the college or university that your child attends. For more information on the number of units required for Texas public schools today, see the Academic Year Tuition Unit Pricing Schedule and Redemption Guide.
Comments: If the units are used at a medical and dental institution, private or out-of-state college or university, career school or apprenticeship program where tuition and schoolwide Required Fees: Required fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. are not locked in, the redemption value would be based on the Transfer Value: Transfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon.

Scenario 7

My child might go to a Texas public two-year community college and then to a Texas public four-year college.

Options: Consider purchasing 200 Type III Units for two academic years of 30 semester credit hours each at a community college and 200 Type I or II Units for two academic years of 30 semester credit hours each at a four-year college.
Comments: Type II and III Units pay the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. value of public four-year and two-year, respectively, public colleges and universities. If the child attends a school above the Weighted Average Cost: "Weighted Average" is calculated according to a formula established by Texas law. The Plan will calculate two Weighted Averages: (1) A Weighted Average cost of undergraduate resident tuition and required fees for four-year public senior colleges or universities in Texas, and (2) a Weighted Average cost of undergraduate resident tuition and required fees at two-year public institutions of higher education in Texas (public junior colleges, public state colleges, and public technical institutes) paid by residents of the taxing jurisdiction of the two-year public institution. Weighted Averages are essentially the average cost of undergraduate resident tuition and required fees at these public colleges and universities in Texas (institutions) and are calculated by 1) multiplying the average amount of the institution’s undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at the institution; 2) adding together the products computed in 1) for each institution; and 3) dividing the sum determined in 2) by the total number of full-time equivalent undergraduate resident students at all institutions. value, an additional amount must be paid by the Purchaser or Beneficiary to the school or additional units must be redeemed. The redemption value of Type III Units is based on in-district resident status.