Preferred Payment Plan

There are three types of purchase plans available under the Texas Tuition Promise Fund plan:

Lump Sum Purchase
This payment plan allows you to purchase a specific number of tuition units by making a one-time, upfront payment. The Lump Sum plan allows you to select a minimum of 25 Type I tuition units or 50 Type II or Type III tuition units and a maximum of up to the then current dollar equivalent of 600 Type I tuition units.

Installment Purchase
This payment plan allows you to purchase a specific number of tuition units at the current unit price and to pay for those units in monthly or annual installments. Installment plans are available for a period of 5 or 10 years, or the number of years until your beneficiary's projected college start date, subject to some minimum time limits.

Installment plans are subject to 8% interest charges. There are no prepayment penalties. Installment plans allow you to select a minimum of 25 Type I tuition units or 50 Type II or Type III tuition units and a maximum of up to the then current dollar equivalent of 600 Type I tuition units.

Pay-As-You-Go Purchase
This payment plan allows you to purchase tuition units at any frequency you choose, without committing to a specific number of units to purchase after purchasing the minimum one unit required to establish an account. Units are purchased at the unit cost in effect at the time payment is received. Unit costs for each unit type will be set each year. Therefore, the calculator prices the Pay-As-You-Go option at today's price, but the actual price will change in future years.