The Plan provides a manageable and affordable way to help pay for your child’s future college tuition and required fees. If used for a Texas public college or university, you can purchase those future benefits at today’s rates.
Lock in Savings at Texas Public Colleges and Universities
The Plan offers an opportunity to protect against rising tuition costs at Texas two- and four-year public colleges or universities.
Use at Colleges in Texas and Around the Country
The Plan is designed to be used at Texas public colleges or universities where tuition and required fees are locked in, but you have the flexibility to use the Transfer Value toward tuition and required fees at most Texas private or out-of-state colleges and universities or career schools.
Federal Tax Advantages
- Any earnings on prepaid tuition contracts are federal tax free if used to pay eligible tuition and required fees.
- Parents, grandparents or even friends may make contributions of up to $14,000 ($28,000 for married couples) per child each year, or up to $70,000 ($140,000 for married couples) prorated over five years to an account, without incurring federal gift tax. Although contributions under these limits are treated as completed gifts by federal tax law, the account owner retains ownership and control over the account. If the Account Owner dies before the first day of the fifth calendar year, the portion of the prorated contributions allocable to calendar years following the year of death (except for earnings on such investment) would be includible in the estate of the Account Owner for federal estate tax purposes. More information can be found in the plan description. Purchasers should consult with a qualified tax advisor.
Tailor the Plan to Your Needs
Choose from a variety of educational goals and payment options. You can select more than one way to pay for your Tuition Units.
Low Impact on Federal Financial Aid Requirements
When applying for federal financial aid, a Plan account owned by the parent is treated as an asset of the parent just like other 529 plans. This means a smaller impact on federal financial aid than if the Plan is an asset of the child.
It’s Easy to Open an Account
Open a Texas Tuition Promise Fund account online in about 15 minutes. Before opening an account, you should first review the Plan Description and Master Agreement for important details about the Plan. You will need to pay a one-time administrative fee of $25 and purchase as little as one Tuition Unit to establish an account. You may also download and mail an enrollment application.
You Control the Account
- Is the owner of the account and has control over how and when Tuition Units are used.
- May change the Beneficiary to another qualified Beneficiary.
- May cancel the account and request a refund.
Entire Family Can Give
Once you open an account, you can invite the entire family, as well as friends, to contribute to your Beneficiary’s account. The Plan makes it easy for your relatives and friends to give Tuition Units to your Beneficiary on special occasions, such as holidays, birthdays, and elementary school graduations. And though the family will help you save, you will control how the money is spent.