Texas Comptroller Susan Combs is reminding families in Texas of a last chance to enroll their potential college students in the Texas Tuition Promise Fund before tuition hikes and various fees charged by public colleges and universities go into effect. The current program will end February 28.
The Fund enables participants to lock in undergraduate tuition and fees at present prices while choosing from an assortment of affordable prepayment options. Combs is making clear the value of this program.
“In Texas the average cost for fifteen credit hours at a public college or university has risen by more than 70% since 2003,” she said. “With the Texas Tuition Promise Fund families can avoid future tuition and required fee increases at Texas public colleges.”
Following the February 28 deadline the program will be closed except to parents of babies aged one year and under. These families will have until July 31 to enroll at the current prices. Open enrollment will resume in September at amounts based on new contract prices determined by the state’s public college costs for 2011-2012.
The plan also includes all ta
x advantages carried by any other 529 Plan, such as federal income, gift and estate tax benefits. By purchasing higher-education “Tuition Units” families can prepay tuition and required fees for four-year degrees, two-year community colleges or just a few classes at public colleges or universities. It costs 100 units to pay tuition and required fees for one academic year.
Payment can be made via lump sum, installment plans or pay-as-you-go arrangements which allow families to start without out with small payments and steadily add more units at the rates in effect at the time of purchase. Once a child’s account is opened, friends and family members can contribute to the account through the fund’s gifting program.
“Family finances may be tight, but the Texas Tuition Promise Fund offers an affordable, flexible plan to fit almost any budget,” said Combs. “Taking control of your child’s college education gives parents one less financial worry.”
For more information visit www.texastuitionpromisefund.org or call (800) 445-4723, Option 5.