Compare plans

Both the Texas 529 College Savings Plans and the LoneStar 29 Savings Plan cover the following higher ed costs:

Costs	Public Senior Institutions	Public Junior Colleges	Career School/ Colleges	Private Institutions
Tuition	×	×	×	×
Required Fees	×	×	×	×
Lab Fees	×	×	×	×
Books & Materials	×	×	×	×
Room & Board	×	×	×	×

The prepaid Texas Tuition Promise Fund covers:

Costs (In-State)
	Public Senior Institutions	Public Junior Colleges	Career Schools/Colleges	Private Institutions
Tuition	×	×	*	×
Required Fees	×	×	*	×
Lab Fees
Books & Materials
Room & Board

* Will cover out-of-state accredited career schools/colleges.

View a side-by-side comparison of the Texas Tuition Promise Fund and the Texas College Savings Plan >

Texas College Savings Plan vs. Other Higher Education Savings Options

You can save for your family’s higher education needs in many ways. And while everyone’s situation and financial goals are different, you may find that the Texas College Savings Plan offers you benefits you won’t find anywhere else.

Texas College Savings Plan

Advantages	Possible Limitations
Account owner retains control of assets Earnings grow tax deferred Qualified withdrawals free of federal taxes Estate and federal gift tax benefits High contribution limits No income or age restrictions Can be used for broad range of higher education costs Flexible beneficiary designation Portability-may transfer assets to a different 529 plan	Investment options potentially limited to those offered by the Texas College Savings 529 Plan Nonqualified withdrawals are subject to ordinary federal and any applicable state income tax and an additional 10% federal tax Assets may only be reallocated once per calendar year or upon a change in beneficiary

Coverdell Education Savings Account

Advantages	Possible Limitations
Qualified withdrawals free of federal taxes Flexible beneficiary designation Can be applied to elementary, secondary and higher education expenses Money can be gifted to child who can open own account, bypassing income restrictions Investment flexibility Considered a parent asset for federal aid purposes if parent is the owner	Income restrictions $2,000 annual contribution limit ^{(See note below)} 10% tax penalty on nonqualified withdrawals Age restriction Contributions for students 18 or older are not allowed except for special needs students Withdrawals must be made by student’s 30th birthday and/or certain penalties may apply (except for special needs students)

UGMA/UTMA Account

Advantages	Possible Limitations
Portion of earnings taxable at student’s rate No limit on amount transferred to account Investment flexibility Unrestricted use of assets, provided it is for the benefit of the minor	Considered student assets for financial aid purposes Adult loses control of assets when child reaches legal age Annual transfers in excess of $12,000 subject to gift tax Irrevocable gift and may not be transferred to anyone else No tax deferral on earnings

Note: Scheduled to sunset after the year 2010.

Learn about the Texas Tuition Promise Fund