The first payment due date is May 1, 2025, for Contracts established during the Plan’s 2024-2025 Enrollment Period. Close X Enrollment Period: Each year the Board sets an annual open Enrollment Period that typically begins on Sept. 1 and ends on the last day of February of the following year. However, newborns may be enrolled through July 31 of each year.
“Sales period” means the year-long period from Sept. 1 through Aug. 31 during which a Purchaser who has established a Contract may make purchases under the Contract. The enrollment period for establishing new Contracts is Sept. 1 through Feb. 28 each year (Feb. 29 in a leap year). Enrollment for newborns or children younger than 1 year of age extends through July 31.
Yes. Texas law provides that assets in an account may not be considered in determining eligibility for Texas state-funded student financial aid. Also, assets in an account are exempt from attachment, execution, and seizure in Texas for the satisfaction of debts under Texas law. Please refer to the Plan Description and Master Agreement for more information.
If you have not already established an online account login, you can do so on the User Set Up page.
Follow the instructions:
Note: The account number can be found on the confirmation that you received when you established the account, on the annual statement, or by calling us at 1-800-445-4723, Option #5.
Account beneficiaries will still be eligible to use their Tuition Units if they or the Purchaser moves to a different state. Residency, for purposes of tuition and schoolwide required fees Close X 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. paid by the Plan, is established at the time of purchase of Tuition Units and carries through to redemption, no matter where the Beneficiary or Purchaser resides at the time of redemption. Semester hours not covered by the Plan may be charged by the institution at the out-of-state resident rate and will be the responsibility of the Purchaser or Beneficiary.
No. The Texas Guaranteed Tuition Plan, also known as the Texas Tomorrow Fund, was offered as the original Texas prepaid plan opened in 1995. It closed to new enrollment in 2003.
While the Texas Tuition Promise Fund is not constitutionally guaranteed, Texas law requires all Texas two-year and four-year public colleges and universities to accept Texas Tuition Promise Fund Tuition Units as payment for the applicable portion of tuition and schoolwide required fees. Close X 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. This law does not apply to medical or dental institutions, private or out-of-state colleges or universities, career schools or registered apprenticeship programs, but the Transfer Value Close X 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. of Tuition Units may be applied toward costs at those schools or apprenticeship programs. The Transfer Value of the units being redeemed will be the lesser of: 1) the costs the Tuition Units would pay 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.
The Contracts are not deposits or other obligations of any depository institution. Neither a Contract nor any return paid with a refund is insured or guaranteed by the FDIC , the state of Texas, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or Orion Advisor Solutions, Inc. or its affiliates. The Contracts have not been registered with the U.S. Securities and Exchange Commission or with any state.
Purchasers should carefully consider the risks, administrative fees, service and other charges and expenses associated with the Contracts, including plan termination and decreased transfer or refund value.
All forms are available here.
The Texas Match the Promise Foundation SM awards scholarships to third- through ninth-graders who are enrolled in the Texas Tuition Promise Fund. The foundation encourages families to save for college by supplementing their contributions to the plan. Eligible students can apply between Sept. 1 and Dec. 31. More information on the scholarships and eligibility requirements can be found at MatchThePromise.org.
For any tax year during which there was a distribution from your account, an IRS Form 1099Q will be issued.
Distributions will be reported to the IRS as follows:
| Type of Distribution | IRS Form 1099Q Taxable Party |
|---|---|
| Payments to Colleges and Universities | Beneficiary |
| Scholarship Refund | Purchaser |
| Voluntary Cancellation Refund | Purchaser |
| Involuntary Cancellation Refund | Purchaser |
Qualified withdrawals are not subject to federal income tax.
If you withdraw more than your qualified higher education expenses for any tax year, or use a refund for anything other than qualified higher education expenses (a “nonqualified withdrawal”), a portion of the nonqualified withdrawal may be subject to federal and, if applicable, state income tax, and may be subject to an additional 10% federal tax. If a nonqualified withdrawal was distributed to your school for your benefit, you will be responsible for the tax. Otherwise, the account Purchaser will be responsible for the tax.
Distributions will be reported to the IRS on Form 1099Q as follows:
| Type of Distribution | IRS Form 1099Q Taxable Party |
|---|---|
| Payments to Colleges and Universities | Beneficiary |
| Scholarship Refund | Purchaser |
| Voluntary Cancellation Refund | Purchaser |
| Involuntary Cancellation Refund | Purchaser |
Generally, withdrawals due to the Beneficiary’s death, disability, receipt of a scholarship (to the extent the withdrawal does not exceed the scholarship amount), attendance at a U.S. Military Academy, or use of Education Tax Credits are not subject to the additional 10% tax. For more details, please see the Plan Description and Master Agreement.
The Board will aggregate the earnings portion of all annual contract distributions having the same Purchaser and same Beneficiary into a single IRS Form 1099Q. In addition, if there are any other contracts with the same Purchaser and Beneficiary under the Texas Guaranteed Tuition Plan, also known as the Texas Tomorrow Fund (or any other prepaid tuition plan which may be established by the state of Texas), those contracts will also be aggregated with your Texas Tuition Promise Fund ® account for these purposes.
Yes, the following exceptions apply:
You should consult your tax advisor before making a nonqualified withdrawal.
The Texas Tuition Promise Fund Student Handbook is available online and may provide answers to your questions or you can contact Customer Service at 1-800-445-4723, Option #5.
Automatic debits and payments are debited on the first business day of each month.
Yes. You can either make a onetime payment on your contract or schedule recurring payments under the Financials tab at access.texastuitionpromise.com. You also always have the option to make a payment by direct deposit, check, money order or payroll deduction.
Yes, you may increase or decrease the number of Tuition Units that you want to purchase on an existing installment contract at any time during the Sales Period, with the following exception. If you want to add an installment plan to an existing contract that has no pre-existing installment plan, the new installment plan may only be added during an Enrollment Period.
As noted above, you may decrease (downgrade) the number or type of Tuition Units that you want to purchase at any time. You can also cancel or terminate a contract at any time and for any reason and receive a refund. However, the value of your refund will depend on when and why you cancel the Contract. See Cancellations and Refunds for information on how refunds are calculated. Earnings on nonqualified withdrawals are subject to federal, state, and local income taxes and any applicable income tax penalties. Please refer to the Plan Description and Master Agreement for more information.
If you choose Type I Tuition Units, 100 units can be redeemed to pay 30 semester hours (two 15-hour semesters) or one academic year of tuition at the most expensive Texas public college or university in the year of redemption. Fewer Type I units would be required for a lower priced four-year or two-year school.
If you choose to purchase Type II Tuition Units, your 100 units will pay for 30 semester hours or approximately one academic year of tuition and schoolwide required fees Close X 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 a college with tuition and schoolwide required fees equal to the Weighted Average Close X 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. cost of tuition and schoolwide required fees of most Texas four-year public colleges and universities, excluding medical and dental institutions. Therefore, if your Beneficiary attends a Texas public school that costs more than the weighted average cost, you will either need to use more units to cover the tuition and schoolwide required fees or pay the difference out-of-pocket. If the school chosen costs less than the weighted average school, you will need to redeem fewer than 100 units for 30 semester hours. For more information, see the Pricing Schedule and Redemption Guide.
Because the Weighted Average Close X 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. falls somewhere in the middle, many Texas public colleges and universities will cost more than the weighted average, and many will cost less. If your child attends a Texas public four-year college that costs more than the weighted average, you will need more Type II Tuition Units than if your child attended a Texas public school at the weighted average cost. If your child attends a school that costs less than the weighted average, you will need less Type II Tuition Units.
The number of Type II Units Close X Type II Units: The assigned value of a Type II Tuition Unit is 1% of the Weighted Average cost of undergraduate resident tuition and required fees for the applicable academic year consisting of 30 semester credit hours with an assumed 15 hours per semester charged by General academic teaching institutions (four-year public colleges) in Texas. Type II Tuition Units cover the same four-year Texas public colleges as Type I Tuition Units, but only pay the Weighted Average Cost of undergraduate resident tuition and required fees at Texas public four-year colleges and universities. Any difference not covered by redemption of Tuition Units must be paid by the Beneficiary or the Purchaser either through the redemption of additional Tuition Units or through alternative funding methods. The percentage of tuition and required fees covered 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 at Texas public four-year colleges and universities.
All types of Tuition Units can be used at any Texas public college or university or converted to the Transfer Value for use at Texas private colleges and universities or out-of-state colleges or universities or eligible career schools. Transfer Value (Transfer Outside of Plan) 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. See the Tuition Unit Pricing Schedule and Unit Value Redemption Guide to determine the number of Tuition Units required for redemption at four-year and two-year Texas public colleges or universities in the current year. needed will vary depending on how much a school’s costs are higher or lower than the Weighted Average of all Texas public four year colleges and universities.
For example, for the 2012-2013 school year, the University of Texas at Austin School of Nursing was about 50 percent higher than the weighted average, and the University of North Texas was about five percent higher than the weighted average. So, in 2012-2013, you would have needed 124.97 Type II Tuition Units to pay tuition and schoolwide required fees Close X 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 hours at the University of Texas at Austin School of Nursing. In contrast, in 2012-2013, you would have needed only 105.13 Type II Tuition Units to pay tuition and schoolwide required fees for 30 hours at the University of North Texas. Lamar University in Beaumont was about three percent less than the weighted average cost of all Texas public four-year colleges and universities, so you would have needed 102.80 Type II Tuition Units for the 2012-2013 academic year.
Similarly, the actual “purchasing power” of Type III Units Close X Type III Units: The assigned value of a Type III Tuition Unit is 1% of the Weighted Average cost of undergraduate resident tuition and required fees for the applicable academic year consisting of 30 semester credit hours with an assumed 15 hours per semester charged by two-year institutions of higher education for residents of the taxing jurisdiction of the two-year college (two-year public junior college/public technical institute) in Texas, disregarding any portion of the tuition charged by a public junior college to a resident of this state who does not reside within the taxing jurisdiction of the junior college. The number of hours paid will vary depending on the college your Beneficiary attends and the extent to which its costs are above or below the Weighted Average cost at Texas public two-year colleges.
All types of Tuition Units can be used at any Texas public college or university or converted to the Transfer Value for use at Texas private colleges and universities or out-of-state colleges or universities or eligible career schools. Transfer Value (Transfer Outside of Plan) 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. See the Tuition Unit Pricing Schedule and Unit Value Redemption Guide to determine the number of Tuition Units required for redemption at four-year and two-year Texas public colleges or universities in the current year. will vary depending on how much a Texas public college’s costs are higher or lower than the Weighted Average of all Texas public junior and community colleges. If the cost at your child’s school is higher than the Weighted Average, if your child takes more than 30 semester hours, or if your child is not a resident of the school’s taxing jurisdiction, you will have to use more Type III Tuition Units or pay the difference. But if the cost at your child’s school is lower than the Weighted Average, you will need less Type III Tuition Units.
Remember, you can use any type of Tuition Unit to pay tuition and schoolwide required fees Close X 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 any Texas public two- or four-year college or university. The number of Tuition Units that need to be redeemed will depend on 1) the type of Tuition Units, 2) the Texas public school attended, and 3) the number of semester credit hours being paid by the Plan. At Texas public junior and community colleges, it will also depend on in-district or out-of-district status. If you have fewer Tuition Units than needed to cover the tuition and required fees or if you prefer to redeem fewer units than are required, the Beneficiary is responsible for paying the difference due to the school by the deadline so that classes are not cancelled for non-payment.
Check the Unit Value Redemption Guide to see where your child’s school falls on the Unit Value tables. You can find the guide at the back of the Pricing Schedule and Redemption Guide.
All Tuition Unit Types Close X 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. can be used at most four- or two-year public colleges and universities in Texas, excluding medical and dental institutions. While it is impossible to predict the exact number and type of units you will need for a particular school in the future, check out the Pricing Schedule and Redemption Guide for the number of units currently required at Texas public schools. At the back of the Pricing Schedule and Redemption Guide you will find information on the number of each type of Tuition Units Close X 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. necessary to cover one academic year’s tuition and schoolwide required fees Close X 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 Texas public two-year and four-year colleges and universities if the units were redeemed in the current academic year. This is subject to change in the year that you actually redeem your Tuition Units. For example, a college whose costs are at the Weighted Average in the year Tuition Units are purchased might not be at the Weighted Average Close X 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. in the year Tuition Units are redeemed.
“Three-Year Holding Period” means the period of time that must transpire before a Beneficiary or Purchaser may redeem a Tuition Unit.