Texas Pre-Paid Tuition Clarifies Refund Policy
by: David Pitman, September 3, 2009 8:09:20 pm
Right now, if a parent or investor decides to cancel a Texas Guaranteed Tuition Plan, they receive not only the money they put in, but also the difference between the price of tuition when they bought the contract, and the price of tuition today. In some cases, parents can get back two or three times their initial investment.
But the fund is facing a $2 billion projected deficit over the next 20 years. So, the Texas Comptroller's Office is changing its refund policy. Spokesman R.J. DeSilva.
"With the rule change that starts November first, with canceled contracts, all contracts would just pay back what you paid in, minus any fees, so you wouldn't get the value of what it would have paid for at a college."
DeSilva emphasizes that the rule change does not, in any way, affect parents who intend to keep their prepaid tuition plans, and actually use them to pay for college.