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 2017-2018 ACADEMIC YEAR

The Texas Prepaid Higher Education Tuition Board will consider the 2017-2018 hourly reimbursement rates for the Texas Guaranteed Tuition Plan (TGTP) for approval at their August meeting, tentatively scheduled for August 15, 2017. Distributions for Fall 2017 will NOT be processed prior to that date.  We will update the website with the new rates when approved by the Board.  If your beneficiary will be using your TGTP contract to attend a college or university this Fall, you should notify the college or university that you intend to use the plan as payment for your tuition and school-wide required fees.

Most Texas public and private colleges and universities will pre-credit the student's account for tuition and school-wide required fees for the hours covered by the plan pending receipt of payment from TGTP.  However, you should coordinate with in-state or 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 school-wide required fees, they may not pre-credit the account for expenses 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 contract. You must pay any costs not covered by the plan by the school's payment deadline to avoid cancellation of your beneficiary's classes.

2016-2017 Academic Year approved tuition and required fee hourly reimbursement rates effective Fall 2016 - Summer 2017

  • $97.89 for junior college contract hours
  • $304.83 for senior college contract hours
  • $829.35 for private college contract hours

(The above rates are based on the contract type purchased.)

2015-2016 Academic Year approved tuition and required fee hourly reimbursement rates effective Fall 2015 - Summer 2016

  • $93.97 for junior college contract hours
  • $293.36 for senior college contract hours
  • $780.24 for private college contract hours

(The above rates are based on the contract type purchased.)

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.

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.