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Texas Tuition Promise Fund
Linda Fernandez, DirectorEducational Opportunities and Investment DivisionTexas Comptroller’s [email protected]
State of Texas 529 Plans
Texas Guaranteed Tuition Plan, aka the Texas Tomorrow Fund®, the state’s original prepaid tuition plan established in 1996
Texas Tuition Promise Fund 2
State of Texas 529 Plans
Texas College Savings Plan®, a direct-sold college savings plan, established in 2003
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State of Texas 529 Plans
LoneStar 529 Plan®, an advisor-sold college savings plan, established in 2003
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State of Texas 529 Plans
Texas Tuition Promise Fund®, the state’s newest prepaid tuition plan established in 2007
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What is the Texas Tuition Promise Fund?
Created by HB 3900 in the 80th Leg. Session (2007)
Administered by Texas Prepaid Higher Education Tuition Board
Plan opened for enrollment in 2008
529 Plan allows purchasers to prepay future tuition and required fees at “today’s prices”
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Highlights25,600 enrollments (to date)
Three-year holding period prior to redemption of tuition units
Approximately 830 contracts with mature tuition units
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HighlightsPays undergraduate tuition and required fees
(fees that must be paid by all students)
Texas public schools must accept as payment in full for hours paid by plan
Sold in tuition units. One unit = approximately 1% of 30 credit hours
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Tuition UnitsType I units cover undergraduate resident tuition and
required fees at up to the most expensive Texas public 4-year school.
Type II units cover the weighted average cost of undergraduate resident tuition and required fees at Texas public 4-year schools.
Type III units cover the weighted average cost of in-district tuition and required fees at Texas public 2-year schools.
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Tuition UnitsAll types of units can be used at any Texas public
college or university.
Amount of tuition and required fees covered depends on school attended, type of units, and hours enrolled.
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The table below provides an example of the number of tuition units that would be needed at various Texas public colleges and universities if redemption occurred during the 2011-2012 academic year:
4-Year or 2-Year University/College Tuition and Required Fees 2011-2012 Academic Year
# of Units Required* Type I Type II Type III
UT-Dallas 2011 Guaranteed $11,168 100.00 140.13 543.61 UT-Austin Business $10,738 96.15 134.73 522.68 Texas A&M-College Station Business $9,244 82.77 115.98 449.93 Texas Tech University $8,764 78.48 109.97 426.62 University of North Texas $8,366 74.91 104.96 407.20 Texas Woman’s University $6,587 58.98 82.64 320.61 Tarleton State University $6,359 56.94 79.78 309.51 Angelo State University $7,349 65.80 92.21 357.72 University of Houston-Downtown $5,716 51.18 71.72 278.23 Brazosport Community College $1,962 17.57 24.62 95.50 *Number of units required for 30 semester hour academic year
Value of a Tuition UnitValue is determined annually based on the sales
price of that type of unit in the year of redemption. For example:
Units needed to redeem is calculated as tuition and required fees for hours enrolled divided by the assigned value of the unit type being redeemed.
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$11,168.00 2011-2012 Sales Price of 100 Type I Tuition Units (represents 30 semester credit hours at most expensive TX public school)
X 1.00% Education Code, Chapter 54, Subchapter H, §54.753(b)
$111.68 Assigned Value of one Type I Tuition Unit in 2011-2012 Academic Year
Statutory Redemption Formula
Texas public colleges receive lesser of:
◦1) Amount paid by purchaser for tuition units, plus or minus net earnings or losses,
◦
Earnings = greater of:
◦A. actual net return on account’s payments while funds were included in the Plan’s portfolio OR
◦B. 5% return on investments, subject to the availability of money in the fund for that purpose (funded status of Plan must be 110% or more)
OR
◦2) 101% of then-current tuition and required fees charged by the school at the time of redemption
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Unit Redemption Process Schools complete surveys by June 1
Beneficiary enrolls at school; Purchaser authorizes unit redemption
Plan notifies school of purchaser authorization; school pre-credits student account
School invoices Plan using Plan portal and template
Plan determines number of tuition units that need to be redeemed
Plan determines amount to be paid to school using statutory formula; issues payment
School credits student account for amount of tuition and required fees for number of hours covered by Plan
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Find the sales price (assigned value) for the type of tuition units being redeemed at www.texastuitionpromisefund.com
Divide the student’s tuition and required fees for hours enrolled by the sales price of the unit type being redeemed
Confirm that purchaser has redeemed sufficient units to cover tuition and required fees for hours enrolled by student
Example on Handout page 4Texas Tuition Promise Fund 15
Pre-Credit for Texas Schools
Resources for PurchasersPostcards Sent Annually to Purchasers with
Mature Accountswww.texastuitionpromisefund.com
◦Account Access: available units and online authorization of redemption of units
◦Student Handbook◦Unit Value Redemption Guide◦Plan Description/Master Agreement◦Benefit Authorization Forms◦Contact Us: 1-800-445-4723, Option #5
Examples Handout pages 6-8
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Access path:
Login: To request Login ID, contact [email protected]
Billing FAQs
Student Search
Examples Handout pages 9-11 Texas Tuition Promise Fund 18
School Portal
Reports
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Student Authorization Report - a cumulative list of all TTPF beneficiaries with submitted authorizations for your institution for the specified term and academic year.• Published weekly, on Mondays• Changes from the prior week’s report will
have an indicator for ease of identification• Select specific term(s) and academic year(s)
to access• Downloadable in Excel or CSV format
Reports
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Benefit Payout - a breakdown of what was paid for each invoice submitted
• Select from any report published to date
• Academic year and term included in file name
• Excel format
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Example of Student Authorization Report (XLS) Based on Purchaser Authorizations for Your School:
Examples Handout pages 12-13
Texas Tuition Promise Fund
Linda Fernandez, DirectorEducational Opportunities and Investment DivisionTexas Comptroller’s [email protected]
