Aunt wants to help her niece with college.
Rosa Guzman and Maria Reyes’ Profile:
- Rosa is a hospital administrator.
- Maria (12) is her niece.
Rosa Guzman is head of nursing at a small regional hospital. She makes about $85,000 a year. Her niece is 12-year-old Maria Reyes.
A few years ago, Maria told her family that she wants to be a nurse. She seems to be serious about her goal. Rosa has no children of her own, and has decided that she wants to help her favorite niece.
Rosa knows Maria will need at least a two-year degree to become a registered nurse.
Rosa needs a plan that will pay for two years of college tuition and required fees, beginning in six years.
Rosa Guzman’s Solution:
As a hospital administrator, Rosa knows that the demand for skilled healthcare is growing at an ever-increasing pace. She’s glad that her niece is thinking about a career in nursing.
Rosa believes that Maria will do better if she takes her nursing courses at her local community college, where she can be in smaller classes and receive more individual attention.
Rosa could use the Texas Tuition Promise Fund to prepay the average cost1 of tuition and required fees for two years of junior college. Using an installment plan, Rosa could make monthly payments of only $68.44 until Maria graduates from high school.
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. |
Maria Reyes’ College Savings
(Allocating $68.44 per month to Texas Tuition Promise Fund)
| Texas Tuition Promise Fund Type III |
Five Years Later |
|---|---|
Make monthly payments of $68.44 for five years to purchase 200 Type III units. (Pricing for 2008-2009) |
Two years of the average cost1 of tuition and required fees at a Texas junior college are paid for Maria. |
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.
