What happens with my tuition contract if the beneficiary graduates early from high school or takes college courses before high school graduation?

The Texas Guaranteed Tuition Plan provides for the use of prepaid tuition benefits to beneficiaries that use their funds earlier than their projected graduation year. The Plan must be notified that the beneficiary is either graduating early or using the contract benefits while still attending high school. The Plan will notify you of the amount due (if any) as a result of attending early. To pay the tuition and fees early, the account must be cleared of all outstanding fees and the account must be paid in full.

Do admissions standards still apply if I have a prepaid tuition contract?

Yes, the Texas Guaranteed Tuition Plan does not guarantee that students will be accepted by any college or university. Applicants must still meet all the admissions requirements of the school they wish to attend.

What if a college decides not to participate in the program in the future?

The program does not require the participation of any individual college or university. The Texas Guaranteed Tuition Plan is simply a source of funds which participating students use to pay part or all of their tuition and fees. As long as a college will accept money for payment, they will accept money from the Texas Guaranteed Tuition Plan. If tuition and required fees at the selected private college or university exceed the estimated statewide private college average, the purchaser or beneficiary is responsible for making up the remaining balance of the costs.

What do I do when my child reaches college age?

When the beneficiary graduates from high school and is accepted at a college or university, the contract becomes redeemable. In the spring of their senior year in high school, students are sent a student identification card and a handbook that describes how to use contract benefits. The college or university will bill the Plan for tuition and required fees on behalf of the beneficiary; the beneficiary will be required to pay any additional charges not covered by the Plan.

If the beneficiary plans to go to school outside Texas, an Intent to Enroll in an Out-of-State College or University form should be submitted to the Plan 60 days in advance of enrollment. After the Plan receives the form, a third-party bill letter is sent to the school. The letter will contain billing instructions and the amount the Plan will pay per credit hour on behalf of the beneficiary.

What if the beneficiary decides to attend college out-of-state?

The beneficiary must notify the Plan in writing 60 days in advance of your intent to enroll in an out-of-state college. Once we receive the notification, a third party bill letter will be sent to the school. This letter will contain billing instructions and the amount that the Plan will pay per credit hour on behalf of the beneficiary. The amount paid will not exceed the average amount of tuition and required fees in Texas for the current academic year under the plan selected. The Plan will pay the college after receipt of an invoice. There is a $25 processing fee deducted from the payment to the out-of-state-school for each term funds are disbursed on your behalf.

What if the student doesn't complete the number of credit hours for which tuition has been prepaid?

The purchaser may receive a refund on the unused portion of the contract by notifying the Board. The refund of the unused credit hours will be paid at the current average tuition rate. Any unused credit hours from a contract can be used for graduate school after matriculation from college. Payments to graduate schools will be made at the average tuition and fee rate of the plan type.

Contract benefits may be transferred to another beneficiary, if the new beneficiary is a "family member" as defined by Section 529 of the Internal Revenue Code and meets the other requirements for a qualified beneficiary, provided that the original beneficiary has not used any benefits.