Scholarships and Financial Aid

What impact will participation in the Texas Guaranteed Tuition Plan have on a student's eligibility for financial aid?

Effective July 1, 2006, prepaid section 529 qualified tuition plans, such as the Texas Guaranteed Tuition Plan, are considered assets of the student’s parents for federal financial aid determination purposes. Although prepaid and college savings plans are both section 529 qualified tuition plans, prepaid plans were previously considered a student resource, which resulted in a dollar-for-dollar reduction in the student’s financial need. The Deficit Reduction act of 2005 corrected this inequity and made both types of section 529 plans handled consistently for financial aid purposes.

What if my student receives a full or partial scholarship for college expenses and has a Texas Guaranteed Tuition Plan contract?

Refunds issued to you as a result of a scholarship are based on the hourly rate the program pays to the school.

You can submit scholarship refund information:

• by fax to (512) 475-0081
  
  
• in person, by visiting

  LBJ State Office Building
  111 E. 17th St., Room #510
  Austin, Texas

• by mail —

  Texas Guaranteed Tuition Plan
  P. O. Box 13407
  Austin, TX 78711-3407