You can check online at texastuitionpromisefund or contact customer service at 800-445-4723, Option #5, for information about the Transfer Value of your account
The Purchaser can transfer the Transfer Value (Transfer Outside of Plan) of your Tuition Units to a qualified 529 college savings plan, such as the Texas College Savings Plan ® , and the proceeds can be used to pay up to $10,000 in amounts paid as principal or interest on qualified student loans of the Beneficiary and/or their sibling. The Transfer Value is limited to the lesser of (1) the costs the Tuition Unit would cover at a Texas public college or university or (2) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount. Please note that the $10,000 limitation applies on a installment loans Connecticut per-student basis, rather than a per-account basis, with a lifetime limit of up to $10,000 per Beneficiary regardless of whether the funds are distributed from multiple 529 accounts.
What if the student receives a scholarship?
- Keep the unused Tuition Units Tuition UnitsTuition Units are the unit of measure used to purchase prepaid tuition. Generally, one unit represents one percent of the cost of tuition and required fees for 30 semester hours at the school that most closely matches the unit’s pricing structure. for later use.
- Change the Beneficiary BeneficiaryThe person designated by the Purchaser under a Prepaid Tuition Contract as the person for whom undergraduate tuition and required fees will be paid to an Eligible Educational Institution when authorized by the Purchaser. of the contract to a member of Beneficiary’s family member of Beneficiary’s familywho meets the residency requirement. See the Plan Description and Master Agreement for details and consult your tax advisor to determine whether such a change creates a taxable gift or other adverse tax consequences for the Purchaser or Beneficiary.
- Transfer the Transfer Value Transfer ValueTransfer value is limited to the lesser of: 1) the costs the unit would cover at a Texas public college; or, 2) the price paid for the unit, plus or minus the Plan’s net investment earnings or losses on that amount. Transfer value does not include any state-provided or procured matching contributions or earnings thereon. of unused Tuition Units to a 529 college savings plan, such as the Texas College Savings Plan ® so that the money can be used for fees that are not schoolwide required fees, required feesRequired fees are only those that must be paid by all students as a condition of enrollment in the college or university. They do not include course-specific fees such as equipment usage or lab fees, or fees related to your major or year of study. books, room and board, or graduate school. Transfer Value is limited to the lesser of a) the costs the Tuition Unit would pay to a public in-state college or university, or b) the original purchase price of the Tuition Unit plus or minus the Plan’s net investment earnings or losses on that amount.
- Request a refund request a refundFor all units held at least three years (and for contracts cancelled due to the Beneficiary’s death, disability, receipt of scholarship or admission to a U.S. Military Academy), the Purchaser will receive the Refund Value, which is an amount equal to the price you paid for the unit plus or minus adjusted net investment earnings or losses on that amount, with the earnings rate set annually by the Board at a rate that is up to 2% less than the actual net earnings, is capped at 5%, and is net of any fees due and payable. The earnings portion of a Refund is also subject to federal income taxes plus a 10% federal tax as well as any state or local taxes that may apply. Earnings may only be paid on a refund subject to the actuarial soundness of the fund. Refund Value does not include any state-provided or procured matching contributions or earnings thereon.