Can I make changes to my contract?
Yes, the Texas Guaranteed Tuition Plan provides flexibility to meet the changing needs of your family by allowing changes in your prepaid tuition contract. At any time you may change your payment options or reduce plan benefits (downgrade an account).
For example: You can downgrade a Senior 4 year Plan to a Senior 1 year Plan or change a Senior 4 year Plan to a Junior 2 year Plan. The downgrade has to be done in 1 year increments. Once a contract is downgraded, it cannot be restored to its former status. There is a $50 fee for this plan change. It is not necessary to include your fee with your request. In most instances, we are able to deduct the $50 fee from the proceeds of the downgrade. In the event that sufficient funds are not available from the proceeds to pay the fee, we will notify you and request payment. Should you wish to downgrade your contract, please download the Contract Downgrade Form [PDF]. Contracts cannot be downgraded once contract benefits have been used.
You can also change your payment schedule, such as changing from a five-year installment plan to a ten-year installment plan. There is a $15 fee for this plan change. To change your payment schedule, please submit your written request signed by the Purchaser and Joint Purchaser, if applicable, to our office at the address listed below or fax it to 512-475-0081.
Texas Guaranteed Tuition Plan
P.O. Box 13407
Austin, TX 78711-3407
What are the types of prepaid tuition contracts?
While the Texas Guaranteed Tuition Plan was open for enrollment, it offered the following four plan types:
- Junior College Plan
- Senior College Plan
- Junior-Senior College Plan
- Private College Plan
The Junior College Plan allowed prepayment of up to 64 credit hours of tuition and required fees at any public junior or community college in the state. The plan also covers the Texas State Technical Colleges.
The Senior College Plan allowed prepayment of up to 160 credit hours of tuition and required fees at any public senior college or university in the state.
The Junior-Senior College Plan allowed prepayment of up to 64 credit hours of tuition and required fees at any public junior, community or technical college in the state. In addition, this plan provides prepaid tuition and required fees for any public senior college or university in the state, up to 64 credit hours.
The Private College Plan provides prepaid estimated average private tuition and required fees, as determined by the board each year, for the beneficiary to attend a private or independent institution of higher education or career school for up to 160 credit hours. IMPORTANT: If tuition and required fees at the private college or career school chosen exceed the estimated average as paid by the plan, the beneficiary is responsible for the remaining balance. If the college charges are less than the estimated average, the purchaser can request a refund of the difference. Otherwise, only the hours necessary to pay the student's tuition and required fee charges will be deducted from his or her plan.
What payment options are available?
Contract purchasers may choose from several installment payment options:
- fixed 5-year;
- or number of years until August of the beneficiary's projected high school graduation
Any of the monthly installment options may be made through electronic funds transfer (automatic bank draft), payments mailed directly to the Texas Guaranteed Tuition Plan or through payroll deductions at participating employers. To add electronic funds transfer or payroll deduction, please download and complete the appropriate forms.
Installment contracts cost more than lump sum contracts as a finance charge is included in the payments. If you have an installment contract, you can save money by paying off your account early. To view your early payoff amount, please visit our online account access.
I am changing my payment option to automatic deduction from my bank account or by payroll deduction. I want to be sure that there are no lapses in payments or late fees. What should I do?
If you would like payments to automatically be deducted from your bank, please complete the automatic payment authorization form and return to our office. You will then receive written notification from our office of the effective date of the draft. Please continue to make payments by check until notified that the draft is effective.
If you would like to make payments through payroll deduction, the payroll deduction form should be taken directly to your payroll office to initiate automatic deduction from your payroll. Since there is often a lag between requesting payroll deduction and the start of payments to the plan, we recommend that you consider making payments by check for a month or two to avoid incurring any late payment fees.
You can switch to bank draft at any time by submitting the completed form to our office. You can switch to payroll deduction at any time by submitting the completed form to your payroll office.
What if I want to pay for some of the plan in a lump sum, and some by monthly payments? Is that possible?
Yes. You may send in a lump sum payment in addition to your regular monthly payments at any time. Unless you instruct us to apply this lump sum payment to future installment payments due, this payment will be applied to principal owed and the result is that the contract will be paid in full sooner and the contract price will be less as a result of a reduction in the finance charges related to the installment payments.
Can I prepay my account?
Yes. There is no prepayment penalty. The result is that the contract will be paid in full sooner and the contract price will be less as a result of a reduction in the finance charges related to the installment payments.