Texas Guaranteed Tuition Plan — constitutionally guaranteed to pay for your beneficiary's tuition and required fees.

The state will honor all Texas Tomorrow Fund or Texas Guaranteed Tuition Plan contracts to pay for a beneficiary's college tuition and required fees.

View Information about Texas Guaranteed Tuition Plan Distributions and IRS FORM 1099-Q

Online account access for TGTP students:

Students now have the ability to view their Distribution History and Benefit Balance as well as print Enrollment Verification Letters. Access your account.

IMPORTANT INFORMATION REGARDING BENEFIT PAYMENTS FOR THE 2014-2015 ACADEMIC YEAR

2014-2015 hourly reimbursement rates for the Texas Guaranteed Tuition Plan (TGTP) will be considered for approval by The Texas Prepaid Higher Education Tuition Board at their August meeting, tentatively scheduled for August 19, 2014. No Fall 2014 distributions will be processed prior to that date. Rates will be posted to the website as soon as they are approved by the Board. If your beneficiary will be using your TGTP account to attend a college or university this Fall, you should notify the college or university that you will be using the plan as payment for your tuition and required fees.

While most Texas public and private colleges and universities will pre-credit the student’s account for tuition and required fees for the hours to be covered by the plan pending receipt of payment from TGTP, you should coordinate with in-state or, in particular, out of state schools to verify whether they will pre-credit your beneficiary’s student account and if not, whether you need to pay any amounts due prior to their payment deadline in order to avoid cancellation of your beneficiary’s classes. Even though the school may pre-credit your beneficiary’s student account for tuition and required fees, they may not pre-credit the account for expenses that are not covered by the plan such as course-specific fees, books, and room and board or hours in excess of the hours available on your TGTP account.

Important Information Regarding the Value of Your TGTP Contract for Financial Aid Purposes

The Plan cannot determine and makes no representation as to what effect, if any, a Contract may have on future state, federal, institutional, or private financial aid eligibility of any Beneficiary. The receipt of, or potential for receipt of, distributions or refunds under a Contract may affect a Beneficiary's qualification for or receipt of such financial aid. The Purchaser should contact the financial aid office at the Beneficiary's eligible educational institution for information on financial aid award procedures.

Texas law provides that assets in an account may not be considered in determining eligibility for Texas state-funded student financial aid.

2013-2014 Academic Year average tuition and required fee rates effective Fall 2013 – Summer 2014
(These rates are based on the plan type you purchased)

  • $87.58 for junior college plan hours
  • $273.15 for senior college plan hours
  • $739.78 for private college plan hours

2012-2013 Academic Year average tuition and required fee rates effective Fall 2012 – Summer 2013
(These rates are based on the plan type you purchased)

  • $85.65 for junior college plan hours
  • $265.96 for senior college plan hours
  • $693.51 for private college plan hours

529 Plan Tax Exemption Becomes Permanent

The exemption from federal income tax for withdrawals from Internal Revenue Code Section 529 plans that are used for qualified tuition expenses was scheduled to expire on December 31, 2010. The Pension Protection Act (H. R. 4), which was recently passed by Congress and signed by President Bush on August 17, 2006, made the exemption permanent. This exemption applies to all Qualified Tuition Plans, such as the Texas Guaranteed Tuition Plan (TGTP).

This is not a financial investment vehicle. The public purpose of the Plan as defined in statute is to assist young Texans in obtaining a higher education.

TGTP cannot provide investment or tax advice, and the foregoing information should not be construed as legal, financial, or tax advice with respect to the consequences for any particular individual as a result of the purchase of or distribution from a TGTP prepaid tuition contract. This information is not a substitute for discussing your particular situation with a tax professional or the IRS.