This unit-based prepaid plan provides Texas families with an opportunity to prepay future tuition and mandatory fees at Texas public institutions. By shifting the tuition risk to the state's public universities and colleges (under Texas law), the program is able to offer units at current tuition levels.
- Program typePrepaid unit
- Enrollment periodSeptember 1 thru February 28 (July 31 for newborns.) First payment is due on the following May 1.
- Inception2008
- State agencyTexas Prepaid Higher Education Tuition Board; program manager is Orion Advisor Solutions, Inc.
- Tax deduction
Ratings & Rankings
Our overall rating for TX residents
This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.
Our overall rating for non-residents
This program is not open to you either because it has residency requirements or because it has stopped accepting new enrollments.
SAVING FOR COLLEGE’S 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.
Eligibility
State residency requirements:
Who can be a participant/owner in the program?
Significant time or age restrictions imposed by the program:
Contributions
Maximum contributions:
Minimum contributions:
Contractual Features
Current value of one unit:
Current unit price:
Are program benefits backed by the full faith and credit of the state?
Are program benefits collateralized or guaranteed in any other way?
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Fees & Expenses
Enrollment or application fee:
Taxes and other Benefits
- Tax deduction for single filersNone
- Tax deduction for joint filersNone
Note
Texas doesn't offer tax deductions
Program match on contributions:
State tax deduction or credit for contributions:
State tax treatment of qualified distributions:
Does the sponsoring state exclude the value of an account for state financial aid purposes?
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
Is there a rewards program or outside scholarship program that works with this program?
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