Mike Toomey Texas Lobbyist News: Texas Prepaid College Tuition Enrollment Opens September 1
The following announcement was released at the Texas State Government website. The Texas Lobby Group is making this information public as a service for Texas citizens, Texas politicians, other lobbyists and government consultants, and all interested parties.
As of September 1st of this year, the Texas Prepaid College Tuition program is up and running. The enrollment period goes through to February 23rd, 2013. During this window of time, people are able to prepay all or a portion of their college tuition. It is eligible for public colleges and universities. There are multiple payment options, that allow for this program to be easily accessible for a diverse range in users. A family will purchase a prepaid “tuition unit” that is later used towards undergraduate tuition fees at schools. This is used at two year and four year colleges and universities. Purchasing 100 units is equivalent to purchasing one year of school, or thirty semester hours. Up to six years of undergraduate school and fees can be prepaid. Lump sum payments, installment plans, or “pay as you go” plans are all available. This program is called the “Texas Tuition Promise Fund”, and this is it’s fifth year.
“Texas law requires all Texas two-year and four-year public colleges and universities to accept the Plan as payment for the applicable portion of tuition and required fees. If your Beneficiary uses the units to attend a Texas public college or university, market fluctuations will not affect the future value of those Tuition Units. Prices start around $20 for a Type III unit. Tuition rose 72% at Texas public schools from 2003-2009, so you can avoid any future tuition hikes at those schools by locking in tuition and required fees at today’s prices. The Plan also offers federal tax benefits and flexible payment options.”
This provides an opportunity for parents and students to buy at current tuition rates, and with the climbing expense of school this is something more and more families are looking into. Securing lower tuition rates is universally appealing, as opposed to excessive student loans or waiting for increased prices. The program is relatively young, but blossoming as a viable option for those who can afford to think and plan ahead. The many options regarding payment methods, and reasonable interest rates, make pre paid college tuition available to many Texas students and parents.