You can start a bright future today. Promise.
Kevin and Tanya Gallinger’s Profile:
- 36-and 35-year-old parents of one
- Kevin is a school bus driver; Tanya is a stay-at-home mom
- Child – Timothy (11)
Kevin Gallinger, 36, and his wife Tanya, 35, have one child, 12-year-old Timothy. With only a high school education, Kevin works as an elementary school bus driver. He makes an annual salary of $24,000. Tanya stays home to take care of Timothy. The family qualifies for an earned income tax credit of about $1,500 per year.
Timothy loves to watch stock car racing. When he grows up he wants to be a master mechanic like his Uncle Billy. Timothy loves to hang out at Billy’s machine shop and clean parts and learn about engines. His uncle is encouraging him to be a diesel mechanic after he graduates from high school because a master diesel mechanic will always be able to find work.
The Gallingers realize that Timothy will need technical training after high school to learn to repair diesel engines and their electronic control systems. With the family’s limited income, they can only afford to save a small amount each month.
The Gallingers need a plan that will help them start saving now for Timothy’s future, which may call for only a two-year certification program.
The Gallinger’s Solution:
The Gallingers know that Timothy can study diesel technology at their local community college and that they can use the Texas Tuition Promise Fund to pay tuition and required fees when Timothy enrolls in the program.
The Gallinger family could make monthly payments of $29.59 until Timothy graduates from high school to pay the average cost1 of tuition and required fees for his first year of diesel technology school. They could plan on purchasing additional tuition units each year with some of their earned income tax credit.
Texas Tuition Promise Fund
The Texas Tuition Promise Fund sells tuition units that represent a fixed amount of semester hours at prices determined today.
Your tuition units can be used at Texas public colleges and universities, as well as private colleges in Texas and schools throughout the U.S. You can purchase tuition units all at once, buy them over time or get them through an installment plan. Regardless of which payment plan you select, your account must be open at least three years from the initial payment due date in order to use your tuition units to pay for tuition and required fees.
| Tuition Units | What They Cover |
|---|---|
| Type I: All-Texas College Units | Type 1 units cover tuition and required fees at any Texas public college or university, regardless of its cost. |
| Type II: Texas 4-Year College Units | Type II units are less expensive and are based on the weighted average cost1 of tuition and required fees for in-state students at four-year Texas public colleges and universities. |
| Type III: Texas Junior College Units | Type III units, the least expensive, cover the weighted average cost1 of tuition and required fees for in-state students at two-year Texas public colleges. |
Gallinger Family’s College Savings
(Allocating $29.59 per month to Texas Tuition Promise Fund)
| Texas Tuition Promise Fund Type III |
Six Years Later |
|---|---|
Make monthly payments of $29.59 for six years to purchase 100 Type III units. (Pricing for 2008-2009) |
One year of the average cost1 of tuition and required fees at a Texas junior college is paid for Timothy. |
Note: Some of the family’s earned income tax credit will go to purchase additional tuition units.
Build Your Own Plan
Need help building a plan? Use our online calculator to research the unit pricing and payment options available through the Texas Tuition Promise Fund.
Visit the Texas Tuition Promise Fund Web site at www.TexasTuitionPromiseFund.com to get started.
For details on the jobs of tomorrow and strategies for the education needed, please visit:
www.EveryChanceEveryTexan.org.
For more information on the prepaid tuition plan offered by the state of Texas, please visit:
www.TexasTuitionPromiseFund.com.
1Each year, the Plan looks at the average cost of a year’s tuition and required fees at all Texas public colleges and universities. The average is then adjusted based on attendance at each school to determine a weighted average tuition.
The Texas Tuition Promise FundSM is established and maintained by the Texas Prepaid Higher Education Tuition Board. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the plan manager. Some states offer favorable tax treatment to their residents only if they invest in the state’s own 529 plan. Non-residents of Texas should consider whether their state offers its residents a 529 plan with alternative tax advantages, and should consult their tax advisor. The Contracts are not deposits or other obligations of any depository institution. Neither a Contract nor any return paid with a refund is insured or guaranteed by the FDIC, the state of Texas, the Texas Prepaid Higher Education Tuition Board, any other state or federal governmental agency or OFI Private Investments Inc. or its affiliates. The Contracts have not been registered with the U.S. Securities and Exchange Commission or with any state.
Purchasers should carefully consider the risks, administrative fees, service and other charges and expenses associated with the Contracts. The Plan Description and Master Agreement contain this and other information about the Plan, and may be obtained by visiting www.texastuitionpromisefund.com or calling 1.800.445.GRAD (4723). Purchasers should read these documents carefully before purchasing a Contract.
“Texas Tuition Promise Fund” is a service mark (registration pending) of the Texas Prepaid Higher Education Tuition Board. All rights reserved.
This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.
