Using Your Units
If your child attends a private or out-of-state college or career school where tuition and fees are not locked in, you can apply the Transfer Value of your units towards the costs of tuition and required fees.
The Plan does not pay for room and board, transportation, books, or fees that are not required fees.
The “required fees” covered by the Tuition Units do not include course specific fees, such as equipment usage, laboratory fees, fees related to your major or year of study, or any optional fees. The Purchaser or Beneficiary is responsible for paying fees not covered by the Plan.
If your Beneficiary attends a career school, Texas private college, or any eligible out-of-state college, where the tuition and required fees are not locked in, you can apply the Transfer Value towards the cost of tuition and required fees. Transfer Value is limited to the lesser of (1) the costs the Tuition Unit would cover at a public in-state college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
There is a three-year holding period before any units can be redeemed and the Tuition Units must be paid in full prior to redemption.
A contract terminates automatically on the tenth anniversary of the date the Beneficiary was projected to graduate from high school. Time spent as an active duty member of the U.S. armed services is added to the ten-year limit. If there is a change of Beneficiary, the ten-year anniversary period is calculated based on the projected high school graduation date of the new Beneficiary.