Concerns From Legislators Prompt Comptroller to Request Halt to Changes
in Texas Guaranteed Tuition Plan Contracts

 

 

AUSTIN - Rep. Mark Homer (D - Paris) said today that Texas Comptroller Susan Combs met with the Texas Prepaid Higher Education Tuition Board (Board) this morning to recommend that it rescind the former refund rule for the Texas Guaranteed Tuition Plan. This means that cancelled contracts would be handled the same way they were prior to the recent refund rule change that eliminated tuition-based earnings on refunds for unused hours.

In September, Rep. Homer joined with his colleagues in writing a letter to Comptroller Combs expressing their objection to the action taken by the Board, which intended to deny promised earnings to Texans who invested in their children's futures through the Texas Guaranteed Tuition Plan.


After today's meeting, the Comptroller's office will begin sending out information to program participants allowing them to opportunity to resume their contracts if they had been cancelled during the opt-out period. Contract holders have several options available in consideration of the Board's vote:

 

Quick Checklist At-A-Glance

What if I...

Keep Plan — No Action Needed

Cancel by 1/31/10 and Get Refund

Keep Cancellation
— No Action Needed

Submit Form and Payment to Reinstate Contract

Stayed in the plan since August 18, 2009?

Option 1: Keep Plan - No Action Needed

Option 2: Cancel by 1/31/2010 and Get Refund

N/A

N/A

Cancelled since August 18, 2009, but did not receive and/or deposit check yet?

N/A

N/A

Option 1: Keep Cancellation — No Action Needed

Option 2: Submit Form and Payment to Reinstate Contract

Cancelled and have received payment?

N/A

N/A

Option 1: Keep Cancellation — No Action Needed

Option 2: Submit Form and Payment to Reinstate Contract

Cancelled and rolled payment into another Texas 529 (managed by Oppenheimer)?

N/A

N/A

Option 1: Keep Cancellation — No Action Needed

Option 2: Submit Form and Payment to Reinstate Contract

Cancelled and rolled payment into a non-Texas 529?

N/A

N/A

Option 1: Keep Cancellation — No Action Needed

Option 2: Submit Form and Payment to Reinstate Contract

Texas Guaranteed Tuition Plan Website Information

 


"Denying promised earnings to those who invested in their children's futures through the Texas Guaranteed Tuition Plan was a huge disservice to my constituents," said Rep. Homer. "I couldn't be happier that the Board chose to honor its commitment to Texans and stand by its original promise." 

 

For more information on this issue, please visit the Texas Guaranteed Tuition Plan Website at http://www.tgtp.org/

 

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