Refunds

How do refunds work?

If you cancel your matured contract (those with beneficiaries who are 18 years or older or who have completed high school), the account holder will receive a refund that consists of contributions plus earnings based on the rate of tuition inflation over the life of the contract, minus fees (a $25 cancellation fee and a $3 monthly administrative fee for installment contracts or a $20 one-time fee for lump-sum contracts).

If you cancel your non-mature contract (those with beneficiaries under 18 or still in high school), the account holder will receive a refund that consists of contributions only, minus fees.

Should you wish to cancel your contract, please download the cancellation form (PDF).

Can I get a scholarship refund?

Yes. 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

What if the beneficiary or purchaser dies or becomes disabled?

If the beneficiary dies or becomes disabled while attending school, TGTP will refund the amount of benefits remaining available under the contract, less any applicable fees. A lump-sum refund may be made within four to six weeks after the program has been notified, provided you submit proof of death or disability.

No cancellation fee will be assessed against the contract if a contract is cancelled due to the death of the purchaser or beneficiary or due to the beneficiary's college graduation.