If the beneficiary of a Texas Guaranteed Tuition Plan contract decides not to attend college, the purchaser can receive a refund. This refund is payable within 4 to 6 weeks after a written request is received. The refund amount will not be less than the amount of accumulated payments minus cancellation and administrative fees.

The contract may also be transferred to another beneficiary if no benefits have been used. The new beneficiary must meet the requirements of a qualified beneficiary on the date the designation is changed. The new beneficiary must be a member of the family of the original beneficiary as defined by Section 529 of the Internal Revenue Code. Member of the family includes but is not limited to a brother, sister, stepbrother, stepsister, and first cousin of the beneficiary.

A qualified beneficiary is defined by the Board's program rules as "an individual who is under the age of 18 or who is 18 years of age or older and enrolled in high school at the time the purchaser enters into the contract, who has not graduated from high school nor obtained high school equivalency certification, and is either: