TEXAS TUITION PROMISE FUND

Transcription

1 QuickTime and a None decompressor are needed to see this picture. Presented by: Maricela Arce 1

2 Institution College Costs Academic Year Tuition & Fees Books + Supplies Room + Board Trans Other Total Angelo State $4,661 $1,000 $5,980 $1,854 $1,854 $15,349 Tarleton State University $5,094 $1,092 $6,908 $1,034 $2,112 $16,240 Texas A&M $7,326 $1,156 $7,700 $693 $2,160 $19,035 Texas A&M - Corpus $5,640 $900 $9,971 $1,499 $1,335 $19,345 Texas A&M - Galveston $5,645 $1,156 $7,700 $800 $2,160 $17,461 Texas A&M - Kingsville $4,878 $1,100 $4,030 $1,718 $2,452 $14,178 Texas State - San Marcos $6,518 $978 $7,000 $1,235 $1,955 $17,686 Texas Tech $7,083 $845 $7,210 $1,436 $1,890 $18,464 UT Austin $8,060 $800 $8,896 $940 $2,300 $20,996 UT San Antonio ACCD $6,848 $1,000 $6,615 $2,147 $2,202 $18,812 $1,823 $1,350 $7,190 $2,434 $2,632 $15,038 2

3 College Costs Academic Year Average costs for dependent students living off campus who enroll in 15 credit hours in both fall and spring. Institution Tuition and Fees Books and Supplies Room and Board Trans Other Total Public Universities $5,732 $1,052 $7,004 $1,706 $2,000 $17,494 Private Universities $17,392 $961 $5,846 $1,186 $1,524 $26,909 Technical Colleges $2,806 $920 $5,872 $1,525 $1,442 $12,564 Community College $1,832 $1,350 $7,190 $2,034 $2,632 $15,038 Information based on average costs for dependent students living off campus who enroll in 15 credit hours, in both fall and spring. 3

4 Flexible plan that allows families the opportunity to start paying for future college tuition and required fees based on today s prices Varying levels of protection against tuition inflation across three tuition unit types 4

5 Enroll anytime between September 1 through February 28 The enrollment period for newborns or children less than one year of age is September 1 through July 31 The parent and/or the beneficiary (child) has to be a resident of the state of Texas at the time the account is open Anyone can open an account as long as the child is a resident of Texas 5

6 How it Works The TTPF sells tuition units, which represent a fixed amount of tuition Three types of tuition units are available 100 Units = 30 credit hours at a Texas public college or university (approx. 1 year) You can open accounts for multiple beneficiaries One-time account application fee of $25 to enroll in the plan How much you pay per unit depends on the plan type, the child s age and payment option you selected 6

7 Type I Units (Includes highest-priced Texas 4-year public college or university) Pays for undergraduate resident tuition and required fees at any four-year Texas public college or university, including the most expensive If the cost per credit at your children s chosen school is less than the cost at the most expensive public institution, the difference remains in your account 7

8 Type II Units (average cost of Texas public 4-year colleges and universities) Pays for undergraduate average tuition and required fees at any four-year Texas public college or university If your child chooses a school with tuition costs higher than the average cost of tuition and required fees, you are responsible for paying the difference However, if the cost per credit hour at your child s chosen school is lower than the average cost of tuition and required fees, the difference remains in your account 8

9 Type III Units (average cost of 2-year colleges) Pays for the average cost of undergraduate resident tuition and required fees at 2-year Texas public colleges If your beneficiary attends a Texas public junior or community college with tuition and required fees that are above the state average, the difference must be paid However, if your beneficiary attends a Texas two-year public college with tuition and required fee costs below the state average, you can receive a refund for the difference between the actual tuition and required fee cost and the value of the units you purchased or transfer the remainder to another qualified beneficiary 9

10 Type I Type II Type III *Cost per unit: 100 units equals 30 semester credit hours. 30 credit hours typically equals one academic year. 10

11 Three Payment Options Lump Sum Plan Pre-pay units by making a lump sum payment, locking in the unit price for that sales period Installment Plan Lock in today s unit price Pay-As-You-Go Plan Buy units without a contract or long-term commitment Keep in mind that Pay-As-You-Go units can cost more in the future because prices are adjusted annually according to tuition and required fee costs at Texas public colleges and universities 11

12 Installment Plan (Monthly or Annual Payments) Choose a payment period of 5 years, 10 years, or the number of years until your child s projected high school graduation date Select a contract for each beneficiary Installment plans are subject to interest charges (8%) You may add or reduce the number of units or extend the payment period In order to use your units, the contract must be paid in full and your account must have been open for at least three years 12

13 Pay-As-You-Go Maintain maximum tuition pre-payment flexibility Buy units whenever you want Make contributions as small as $15 after a minimum purchase of one unit Pay the current unit price (unit prices are updated on September 1 of each year) Units must be paid in full and held in your account for at least three years before being used 13

14 How Affordable is it? One year (100 units) of the average cost of tuition and required fees Type III Type II 14

15 What if They are good for 10 years from the time of the child s projected high school graduation They can be transferred to a qualified 529 plan such as the Texas College Savings Plan and then used to cover other expenses such as graduate school, books, or room and board The purchaser can change the beneficiary or request a refund of the remaining units Keep in mind that refunds, including earnings, are subject to taxes and penalties 15

16 Dream as BIG as YOU want. This is Texas! GRAD (4723) Dial #5 16