Refunds

How do refunds work?

If you cancel your matured contracts (those with beneficiaries who are 18 years or older or who have completed high school), the account holder will receive a refund that consists of contributions plus earnings based on the rate of tuition inflation over the life of the contract, minus fees (a $25 cancellation fee and a $3 monthly administrative fee for installment contracts or a $20 one-time fee for lump-sum contracts). Cancellation forms received prior to September 1 each year will be refunded at the prior academic year rates.

If you cancel your non-mature contract (those with beneficiaries under 18 or still in high school), the account holder will receive a refund that consists of contributions only, minus fees.

Under Article VII of the Master Agreement [PDF] available under the Forms section at www.tgtp.org, the amount refunded when a contract is terminated on the 10th anniversary of the beneficiary’s projected high school graduation date, will be calculated as the amount of contract payments made for the hours refunded less any fees due the Plan. See Article IX of the Master Agreement for information about Fees. No earnings will be paid on refund of a contract terminated under the automatic ten-year termination provision.

Should you wish to cancel your contract, please download the cancellation form [PDF].

Can I get a scholarship refund?

Yes. Refunds issued to you as a result of a scholarship are based on the hourly rate the program pays to the school.

You can submit scholarship refund information:

  • by fax to (512) 475-0081

  • in person, by visiting

    Texas Guaranteed Tuition Plan
    1711 San Jacinto Blvd, Room 202
    Austin, TX 78701

  • by mail

    Texas Guaranteed Tuition Plan
    P. O. Box 13407
    Austin, TX 78711-3407

NOTE: e-mail cancellations cannot be accepted because a notary's signature is required.

What if the beneficiary or purchaser dies or becomes disabled?

If the beneficiary dies or becomes disabled while attending school, TGTP will refund the amount of benefits remaining available under the contract, less any applicable fees. A lump-sum refund may be made within four to six weeks after the program has been notified, provided you submit proof of death or disability.

No cancellation fee will be assessed against the contract if a contract is cancelled due to the death of the purchaser or beneficiary or due to the beneficiary's college graduation.