Transcript Texas Tuition Promise Fund

Linda Fernandez, Director
Educational Opportunities and Investment Division
Texas Comptroller’s Office
[email protected]
512-463-4863
State of Texas 529 Plans

Texas Guaranteed Tuition Plan, aka the Texas
Tomorrow Fund®, the state’s original prepaid
tuition plan established in 1996
Texas Tuition Promise Fund
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State of Texas 529 Plans

Texas College Savings Plan®, a direct-sold
college savings plan, established in 2003
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State of Texas 529 Plans

LoneStar 529 Plan®, an advisor-sold college
savings plan, established in 2003
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State of Texas 529 Plans

Texas Tuition Promise Fund®, the state’s
newest prepaid tuition plan established in 2007
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What is the Texas Tuition
Promise Fund?

Created by HB 3900 in the 80th Leg. Session
(2007)

Administered by Texas Prepaid Higher Education
Tuition Board

Plan opened for enrollment in 2008

529 Plan allows purchasers to prepay future
tuition and required fees at “today’s prices”
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Highlights

25,600 enrollments (to date)

Three-year holding period prior to
redemption of tuition units

Approximately 830 contracts with mature
tuition units
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Highlights

Pays undergraduate tuition and required fees
(fees that must be paid by all students)

Texas public schools must accept as payment in
full for hours paid by plan

Sold in tuition units. One unit = approximately
1% of 30 credit hours
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Tuition Units

Type I units cover undergraduate resident tuition
and required fees at up to the most expensive
Texas public 4-year school.

Type II units cover the weighted average cost of
undergraduate resident tuition and required fees
at Texas public 4-year schools.

Type III units cover the weighted average cost of
in-district tuition and required fees at Texas
public 2-year schools.
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Tuition Units

All types of units can be used at any Texas public
college or university.

Amount of tuition and required fees covered
depends on school attended, type of units, and
hours enrolled.
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The table below provides an example of the number of
tuition units that would be needed at various Texas public
colleges and universities if redemption occurred during the
2011-2012 academic year:
4-Year or 2-Year University/College
Tuition and Required Fees
2011-2012 Academic Year
UT-Dallas 2011 Guaranteed
$11,168
UT-Austin Business
$10,738
Texas A&M-College Station Business
$9,244
Texas Tech University
$8,764
University of North Texas
$8,366
Texas Woman’s University
$6,587
Tarleton State University
$6,359
Angelo State University
$7,349
University of Houston-Downtown
$5,716
Brazosport Community College
$1,962
*Number of units required for 30 semester hour academic year
# of Units Required*
Type I
Type II
Type III
100.00
140.13
543.61
96.15
134.73
522.68
82.77
115.98
449.93
78.48
109.97
426.62
74.91
104.96
407.20
58.98
82.64
320.61
56.94
79.78
309.51
65.80
92.21
357.72
51.18
71.72
278.23
17.57
24.62
95.50
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Value of a Tuition Unit


Value is determined annually based on the sales
price of that type of unit in the year of
redemption. For example:
$11,168.00
2011-2012 Sales Price of 100 Type I Tuition Units
(represents 30 semester credit hours at most expensive TX
public school)
X
Education Code, Chapter 54, Subchapter H, §54.753(b)
1.00%
$111.68

Assigned Value of one Type I Tuition Unit in 2011-2012 Academic
Year
Units needed to redeem is calculated as tuition
and required fees for hours enrolled divided by
the assigned value of the unit type being
redeemed.
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Statutory Redemption Formula
Texas public colleges receive lesser of:
◦ 1) Amount paid by purchaser for tuition
units, plus or minus net earnings or losses,
◦
 Earnings = greater of:
◦ A. actual net return on account’s payments while
funds were included in the Plan’s portfolio OR
◦ B. 5% return on investments, subject to the
availability of money in the fund for that purpose
(funded status of Plan must be 110% or more)
OR
◦ 2) 101% of then-current tuition and required
fees charged by the school at the time of
redemption
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Unit Redemption Process

Schools complete surveys by June 1

Beneficiary enrolls at school; Purchaser authorizes unit
redemption

Plan notifies school of purchaser authorization; school
pre-credits student account

School invoices Plan using Plan portal and template

Plan determines number of tuition units that need to be
redeemed

Plan determines amount to be paid to school using
statutory formula; issues payment

School credits student account for amount of tuition and
required fees for number of hours covered by Plan
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Pre-Credit for Texas Schools

Find the sales price (assigned value) for the
type of tuition units being redeemed at
www.texastuitionpromisefund.com

Divide the student’s tuition and required fees for
hours enrolled by the sales price of the unit type
being redeemed

Confirm that purchaser has redeemed sufficient
units to cover tuition and required fees for hours
enrolled by student
 Example
on Handout page 4
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Resources for Purchasers

Postcards Sent Annually to Purchasers with
Mature Accounts
www.texastuitionpromisefund.com
◦ Account Access: available units and online
authorization of redemption of units
◦ Student Handbook
◦ Unit Value Redemption Guide
◦ Plan Description/Master Agreement
◦ Benefit Authorization Forms
◦ Contact Us: 1-800-445-4723, Option #5
 Examples Handout pages 6-8
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Access path:
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School Portal

Login: To request Login ID, contact
[email protected]

Billing FAQs

Student Search
 Examples
Handout pages 9-11
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Reports
Student Authorization Report - a cumulative
list of all TTPF beneficiaries with submitted
authorizations for your institution for the
specified term and academic year.
• Published weekly, on Mondays
• Changes from the prior week’s report will
have an indicator for ease of identification
• Select specific term(s) and academic
year(s) to access
• Downloadable in Excel or CSV format
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Reports
Benefit Payout - a breakdown of what was paid
for each invoice submitted
• Select from any report published to date
• Academic year and term included in file
name
• Excel format
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Example of Student Authorization Report (XLS) Based on Purchaser Authorizations for Your School:
Examples Handout pages 12-13
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Linda Fernandez, Director
Educational Opportunities and Investment Division
Texas Comptroller’s Office
[email protected]
512-463-4863