It’s all about turning a dream into a plan.
Eric and Kay Seale’s Profile:
- 40- and 37-year-old parents of two
- Eric works in retail; Kay is a stay-at-home mom
- Children – Brittainy (10), James (3)
Eric Seale, 40, is the assistant manager of an electronics store and earns an annual salary of $42,000. His wife Kay, 37, is a stay-at-home mom who takes care of their children, Brittainy, 10, and James, 3. Kay worked as a teacher but left teaching three years ago after James was born.
Eric’s family was unable to pay for his college when he was growing up, and he worked various restaurant and retail jobs throughout high school and following graduation. He realizes a college education can open doors professionally. The Seales want to start saving for their children’s college educations, but the Seale family lives month to month on their limited income.
Kay plans to return to the work force before James reaches middle school age. She hopes to earn at least $30,000 annually but is not certain she will find a teaching job that will pay that much in their rural community.
The Seales want to provide for their children’s educations but are not sure how to start. They need a plan that will take into account their limited income and give their children a solid foundation and bright future.
The Seale’s Solution:
By dedicating $93.56 a month, the Seales could use the Texas Tuition Promise Fund to prepay the average cost1 of tuition and required fees for two years of junior college for both of their children. The Seales know that when Kay returns to work, her additional income could be used to purchase the children’s third and fourth years of college.
- For 10-year-old Brittainy, the Seales could make monthly payments of $52.61 until Brittainy graduates from high school.
- For 3-year-old James, the Seales could make monthly payments of $40.95 for 10 years.
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. |
Seale Family’s College Savings
(Allocating $93.56 per month to Texas Tuition Promise Fund)
| Texas Tuition Promise Fund Type III |
Seven Years Later |
Ten Years Later |
|---|---|---|
Make monthly payments of $93.56 for seven years, and $40.95 for three more years, to purchase 200 Type III units for both children. (Pricing for 2008-2009) |
Two years of the average cost1 of tuition and required fees at a Texas junior college are paid for Brittainy. |
Two years of the average cost1 of tuition and required fees at a Texas junior college are paid for James. |
Note: When Kay returns to work, some of her additional income will go to purchase Type II units to pay for the children’s third and fourth years at a four-year Texas public college.
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.
